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

Strategic Alternatives Advantages Disadvantages

There are several strategic alternatives that organizations can consider in order to achieve their goals and objectives. According to recent research, one such alternative is diversification, which refers to the expansion of a company’s operations into new product or market areas (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 potential failure (Nguyen & Hoskisson, 2019). Another strategic alternative is vertical integration, which involves the expansion of a company’s operations along the production chain (Gaur, 2020). This strategy can be beneficial because it can provide a company with greater control over its supply chain and can also lead to cost savings (Gaur, 2020). However, vertical integration can also be disadvantageous because it requires significant resources and can lead to increased complexity in the organization (Gaur, 2020). Cont…

 

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