There are four common business strategies that companies use to achieve growth and profitability. These are market expansion, product development, diversification, and acquisition.
Market expansion is the strategy of increasing sales of existing products in existing markets. This can be done through various means such as expanding distribution, increasing advertising, or offering promotions.
Product development is the strategy of introducing new products to existing markets. This can be done through various means such as research and development, new product development, or spinning off existing products.
Diversification is the strategy of expanding into new markets with new products. This can be done through various means such as joint ventures, licensing, or franchising.
Acquisition is the strategy of buying another company in order to gain access to its markets and products. This can be done through various means such as mergers, acquisitions, or stakes in other companies.
