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Discuss two strategies that Inell Ltd - Leaving Cert Business - Question B - 2002
Question B
Discuss two strategies that Inell Ltd. could use to successfully expand the business. Make relevant assumptions that you feel may be necessary, given the details abo... show full transcript
Worked Solution & Example Answer:Discuss two strategies that Inell Ltd - Leaving Cert Business - Question B - 2002
Step 1
Strategy 1: Growth
Answer
Inell Ltd. can leverage its established brand reputation in Ireland to expand through growth by increasing its product range and exploring new market segments. This strategy involves assessing current market needs and aligning product offerings accordingly. By enhancing its existing product lines and targeting both domestic and foreign customers, Inell can capitalize on geographical diversification that seeks untapped customer bases. It is essential to analyze market demands and trends to understand where potential growth exists. Moreover, this approach can help improve profitability while also ensuring that Inell maintains its high-quality reputation.
Step 2
Strategy 2: Diversification
Answer
Another viable strategy for Inell Ltd. is diversification. The company should consider merging or acquiring businesses that offer complementary products or services. This would not only broaden the existing product range but also enable Inell to tap into different market segments. For example, entering into a joint venture with a business that specializes in high-demand agricultural equipment could enhance product offerings and market reach. This strategy carries the potential to mitigate risks associated with market reliance while creating synergies that can lead to increased operational efficiency and market competitiveness.