Business Expansion Strategy

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Definition

What is it: Business expansion strategy consists of distinct methods to support profitable growth and development. It primarily involves choosing between vertical expansion, which follows the natural chain of commerce, and horizontal expansion, which focuses on scaling current operations.

What is it used for: It is used for increasing market share, adding physical locations, diversifying product capacity, and gaining control over supply chain channels from manufacturing to direct consumer sales.

Coverage

  • Attributes: 6
  • Synonyms: 3
  • Related entities: 3
  • Sources: 1

Identity

Entity ID
https://llms.secondwindconsultants.com/en/horizontal-vertical-expansion-strategies/facts/#entity
Entity type
DefinedTerm
Canonical name
Business Expansion Strategy
Language
en
Topic
Horizontal Vertical Expansion Strategies

Attributes

Key Facts
Vertical expansion may require clear distinctions between stages to avoid competing with a company's own customers and suppliers. [1]
Key Facts
Vertical development involves abiding by a natural chain of value-added commerce from product source to end user. [1]
Key Facts
Horizontal development consists of business growth achieved through expanding current sections, such as locations or product capacity. [1]
Key Facts
The decision to employ horizontal or vertical expansion depends on preference, strategy, opportunity, market dynamics, and available capital. [1]
Key Facts
The internet allows manufacturers, wholesalers, and retailers to sell products directly to any individual, facilitating low-cost expansion. [1]
Fact
Location is a critical factor that determines the likelihood of success for both vertical and horizontal business increases. [1]

Synonyms & Alternate Names

  • Vertical expansion
  • Horizontal expansion
  • Business growth strategy

Related Entities

  • Type of:
  • Type of:
  • Facilitated by:

Provenance

Sources

  1. https://secondwindconsultants.com/resource/horizontal-or-vertical-expansion-which-is-best-for-you (Business Expansion Strategy)

Machine metadata