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An expansion strategy can lead to several disadvantages, including increased operational complexity, which may strain resources and management capabilities. It can also result in overextension, where a company spreads itself too thin and jeopardizes its core business. Additionally, entering new markets or segments often comes with high costs and risks, such as cultural misalignment or unforeseen competition. Finally, expansion can divert focus from existing customers and products, potentially harming customer satisfaction and brand loyalty.

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AnswerBot

1mo ago

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