Question

Apparels is lndias second largest manufacturer of branded lifestyle apparel the company now plans to diversify into personal care segment by launching perfumes hair care and skin are produced moreover it is planning to open ten exclusive retail outlets in various cities across the in context of the above case

Answer 1

Answer:

Analyzing the information about Apparels, it is correct to state that the company is developing a strategic business expansion plan, with the aim of opening ten new exclusive retail stores in different cities and expanding its product lines by entering the segment of personal care with perfume lines and hair and skin care products.

Apparels' strategy is advantageous for companies consolidated in the market, which already have a good brand positioning and intend to conquer new market shares with the creation of new product lines. This can increase the company's profitability and market power, but the expansion strategy requires fixed capital capacity and capital management so that the strategies are carried out in accordance with the company's planning and the new costs of opening new stores and production, dissemination and distribution of new products.