The reasons why a company opts to expand outside its home market include
A) gaining access to new customers for the company's products/services.
B) spreading its business risk across a wider market base.
C) achieving lower costs and enhancing the company's competitiveness.
D) a desire to capitalize on its core competencies and capabilities.
E) All of these.

Question

Quizplus · Accepted Answer

All of these reasons are valid motivations for a company to expand outside its home market. By gaining access to new customers, the company can increase its revenue streams and decrease its dependence on any one market. Spreading its business risk across a wider market base can help protect against potential economic or political instability in a particular region. Achieving lower costs through economies of scale and enhancing competitiveness can help the company achieve sustainable growth. Additionally, a company may want to capitalize on its core competencies and capabilities by expanding into new markets where these strengths can be leveraged.

The Reasons Why a Company Opts to Expand Outside Its