Discuss the rationale, advantages and disadvantages for strategic alternatives.Strategic Alternatives Advantages Disadvantages

Strategic Alternatives Advantages Disadvantages

To achieve their goals, organizations have several options. According to recent research, one such alternative is diversification, which refers to the expansion of a company’s operations into a new product or market area (Nguyen & Hoskisson, 2019). This strategy can be advantageous because it can provide a hedge against market fluctuations and can also increase a company’s competitiveness (Nguyen & Hoskisson, 2019). However, diversification can also be risky because it requires the company to allocate resources and management attention to unfamiliar areas, which can lead to a potential failure (Nguyen & Hoskisson, 2019). Vertical integration can be another strategy. It involves expanding the company’s production chains (Gaur 2020). Vertical integration can prove to be a good strategy, as it allows companies greater control over their supply chains and may also result in cost savings (Gaur 2020). Vertical integration is not always a good idea. It requires lots of resources, and it can increase the complexity of an organization.

Still struggling to complete your homework?
Get instant homework help from our expert academic writers!