Methods Of Business Growth(internal growth)

Question 1

Internal growth

Known as organic growth

Answer 1

When a business expands within, for example opening new stores or launching new products.

Question 2

Developing new products

Answer 2

Innovation is the development of an idea into a new products or process, business then invest time and money to make a profit.
Product innovation occupies through adapting a product that already exists.

Question 3

Investment in research and development is expensive

Answer 3

There are high fixed costs
Can create barriers to entry and a tendency towards less completion in the market.
This increase the market power of the buisness.

Question 4

Changing the marketing mix

Answer 4

Opening more of physical stores, making it more convenient for customers.
Increasing the product range
Changing price to help increase market share
Increasing promotional speed

Question 5

Taking advantage of technology

Answer 5

Use of e-commerce and

m-commerce to develop sales and markets

Question 6

Expanding over-seas

Answer 6

Selling the same products but aboard.
This can be expensive and risky and less understanding of the market
However, there is huge potential reward due to the size of the overseas market