Adv, Disadv of Expanding & Opening Shop Down Road

Question 1

Advantages of Expanding Business

Answer 1

• Increased market research and potentially tap into a new customer base
• Diversification of revenue streams
• Brand visibility in other locations

Question 2

Disadvantages of Opening Shop Close By

Answer 2

• Limited market reach, as it would be similar customer base
• Dependant on market conditions (demand, demographics, competition)
• Potential competition from existing businesses nearby

Question 3

Advantages of Opening Shop Close By

Answer 3

• Close to current customer base, can build loyalty
• Easier to manage operations and inventory
• Potentially save more money than expanding

Question 4

Disadvantages of Expanding Business

Answer 4

• Higher operational costs (rent, staffing, marketing) for managing multiple locations
• Challenges in maintaining quality between all locations
• Increased logistical complexities in supply (ensuring things come on time, having enough stock etc - finding new supply potentially)