Answer to Question #241353 in Economics for sidra

Question

evaluate the advantages and disadvantages to a mobile phone manufacturer of internal growth? 12marks

Answer 1

Advantages:

- is based on the known abilities and capabilities of the organization;

- a highly concentrated strategy can effectively develop existing skills to create a competitive advantage;

- the company can be more sensitive to the needs of the market and gain a reputation in this area;

- usually a low-risk strategy;

- gradual growth is easily tracked from a management point of view.

Disadvantages:

- it is more progressive than revolutionary strategy;

- there are restrictions within which growth can take place in one market;

- the company pursuing this strategy is subordinated to changes in consumer preferences and turns towards a downturn in the economy;

- the strategy imposes significant responsibility on the company in terms of tracking the actions of competitors;

- the strategy imposes responsibility for maintaining the level of innovation in the field of their own products;

- the strategy requires significant financial expenses for advertising and product promotion.