The term mergers and acquisitions (M&A) describes a process where two companies combine. Usually, they may include two companies merging into a single entity. On the other hand, it may also involve one company purchasing shares in another. The acquired company may become a subsidiary or get dissolved. In the former case, the subsidiary company …
When a company starts its operations, it may be relatively small. Startups is the term used to describe those companies. Usually, they have limited resources and seek to obtain finance from various sources. Once they get this finance, they fund their operations to grow. This growth occurs through organic methods. In most cases, it involves …
Vertical Vs Horizontal Integration: Top Key Differences READ MORE
Growth and expansion are one of the primary success factors for companies. These factors allow companies to increase their revenues and attract new customers. Usually, companies use their products to grow their operations. As they grow, they introduce new products to enhance their product line. Through these products, they access a larger market and increase …
What Is Diversification? Top 7 Reasons for Diversification – Explained READ MORE
Companies use an organizational structure to outline how certain activities help achieve their goals. This structure also allows companies to organize their operations to create flows between various levels. Usually, large and established companies have several departments and functions. Through an organizational structure, they can manage those functions better. Companies can use several formations to …
Strategic Business Unit (SBU) Vs Division: What Are the Differences? Explained READ MORE
A strategy is a plan of action that companies use to achieve their long-term goals. In other words, it is a long-term plan that companies use to meet their objectives. More specifically, it involves a pattern of activities that seek to achieve a company’s goals. Furthermore, it helps adapt its scope, resources and operations to …
Growth and expansion are factors that most companies consider crucial for progress. Companies can achieve these through several strategies. However, they must establish what their goals and objectives are first. It provides a base for the strategy used to achieve growth. Some companies try to expand into their active areas, while others go beyond those. …
Diversification is a marketing entry strategy that companies use to expand to new markets and products. This strategy allows companies to increase their profits by expanding their operations. However, it involves moving away from existing core activities. This way, companies can offer new products to a new customer base. With diversification, companies can expand their …
What is Unrelated Diversification? A Conglomerate Approach to Diversification READ MORE
Companies use various strategies to enter new markets and expand operations. Usually, these strategies fall within the market entry strategies. These strategies can help companies grow their activities. Similarly, they also provide access to new revenue streams. Sometimes, companies may choose to enter similar areas in line with their current operations. Companies may also seek …
Most companies operate in a competitive market, where it is crucial to outperform the competition. It can come from several factors, known as a competitive advantage. Usually, this process involves attracting customers through unique characteristics or features. For example, companies may use lower costs or better quality to outperform competitors while increasing business. Competitive advantage …
Companies operating in a competitive advantage will always strive to achieve a competitive advantage. It includes the factors that allow them to produce goods and services better or at a lower rate. These factors contribute to attracting more customers while increasing a company’s sales. Therefore, competitive advantage is one of the essential aspects of achieving …
How to Achieve Differentiation Strategy? – Explained READ MORE
