4 Strategies That Are Effectively Used in the Context of Your Business Expansion
Business expansion is a step generally taken by companies to generate more profits, and this is the dream of all business people. However, to be able to generate greater profits, you also need a lot of resources, be it money, time, or people.
Business expansion is a big leap in business, so you need to calculate everything carefully so that opportunities and risks that may arise can be more measured.
1. Add New Products or Services
This strategy sounds simple, but taking this strategy seriously is not as easy as you might think. You need to find out what product or service the customer wants, and how many of them are willing to spend money on your product.
You also need to consider your ability to produce, market, or sell products to make a profit. The best way to do this is to do a thorough market research before looking for additional resources (financial or human) to produce new products or service expansion.
2. Sell More Products to Existing Customers
Start by analyzing market segmentation. It aims to identify which consumer segments make the most purchases. After that, focus on sales and marketing strategies in that consumer segment. This segment is the people who already have the belief that your product can solve the problems they face. You just need to convince them to buy more of your product.
3. Reaching New Territories or Segments
The main focus of this strategy is to market and sell products to new consumers. The new consumers referred to here are those who come from different segments, or who are in different regions.
If your type of business is retail or shop, the type of business expansion that is carried out usually opens new stores or outlets in different areas, both different cities and provinces. As for online businesses, try to market these products to new segments other than those that already exist today. These new segments are those that have the potential to be one level below the existing market segments.
For online businesses, you can take advantage of paid advertising features that are usually provided by search engine platforms and social media. You can set yourself who can see your ad on the platform. There are many demographic aspects that you can customize, from age, gender, and location; or psychographic aspects, such as interests, activities, and values. This way, your ad will only be seen by the right people, at the right time, and through the right media.
4. Acquisition or Merger with Other Businesses
Merger is the process of merging two or more companies into one unit to obtain mutual benefits. While the acquisition is the purchase of a company by another company.
Both are probably the fastest way to expand a business with significant changes. Mergers or acquisitions can double the size of your business in a short time, generate massive sales growth and increase revenue. However, you need to research each prospective company that will merge or acquire. This needs to be done to ensure that this step will provide great benefits, both in the short and long term. Acquiring or merging with an “unhealthy” company will hurt your business later.
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