External Growth Methods
- Created by: tanja soulsby
- Created on: 02-06-17 11:48
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- External Growth Methods
- Diversification
- Combine with an existing business operating in the market they want to enter
- Gain from experience of those employed by business they combine with
- Takeovers / Mergers
- Reduce the amount of competition they face
- With companies in the same market
- Move into another country
- Often combine with companies already operating and have an established infrastructure in the country
- Economies of Scale & Scope
- Benefits businesses in the same industry combining
- Switch Production
- Switch to countries where labour costs are low but expertise exists
- Often in car industry
- Develop new products & processes
- If businesses lack certain technology / expertise might consider combining with businesses already with it
- Diversification
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