Page 1 - Microsoft Word - MM code -241505010101

Entrepreneurship
Class-XI
Ch-5
Ln-3
Code-241505010113

EXPANDING MARKET
1.For achieving growth objectives the firms use: Stability Maintain Strategies, Expansion Growth
Strategies, Retrenchment Combination Strategies.
2. Entrepreneurial strategy represents the set of decisions, actions and reactions that first generates
and then exploit over time, a new entry in a way that maximizes the benefits.
3.Expansion refers to enlargement or increase in the same line of activity.
4. For expansion three frameworks are used:
A. Intensification
B. Integration
C. Diversification
5. Intensive strategies include: Penetration Strategies, Market Development Strategies, Product
Development Strategies.
6. Intensive expansion refers to the increase of sales of its existing product by enlarging the existing
markets by an enterprise.
7. Integrative Strategies includes Vertical Expansion and Horizontal Expansion
8. Diversification Strategies means newlines of business are added either to the current business or may
be quite unrelated.

Expansion Strategy:
Strategy represents the set of decisions, actions and reactions that first generates and then exploit over
time, a new entry in a way that maximizes the benefits of newness with minimizing its cost.
Ansoffs Product Grid.

Corporate Strategy:

(a)Stability maintain strategies
(b) Expansion – growth strategies
(c) Retrenchment/Divestment strategies
(d) Combination strategies
STABILITY” is what the entrepreneur is looking for in the beginning as stability strategy is less risky,
easier and comfortable, unconsciously pursued, defensive and satisfactory and also enhances functional
efficiencies.
A firm is said to follow stability/consolidation strategy if:
(a) It decides to serve the same markets with the same products.
(b) It continues to pursue the same objectives.
(c) It concentrates its resources in a narrow product-market sphere for developing a meaningful
competitive advantage.
(ii) An expansion strategy is a strategy that a firm pursues when—
(1) Additional Product: It serves the public in additional product or service or adds markets of functions
to its definitions.