Definition (1):
Geographic expansion is an internal growth strategy in which an entrepreneurial business grows by simply expanding from its original location to additional geographical sites. This type of expansion is most common in retail settings.
For example, a small business that has a successful retail store in one location may expand by opening a second location in a nearby community. Gap Inc., Walgreens, and Chipotle are examples of firms that have grown through geographic expansion. Of course, McDonald’s which now has over 31,300 worldwide locations is the classic example of incredibly successful growth through geographic expansion.
Definition (2):
“Geographic expansion can help you gain access to new markets and talent pools, reduce costs, and perhaps most importantly, provide a robust pipeline to fuel your company’s future growth.”
If your company has a diversified strategy for growth, it will protect your business from country-specific economic downfalls. You can reduce risk if you broaden your presence. Again, when you won’t take your services/products global, and won’t adapt to the ever-changing business world- your competitors will. The competition is unrelenting and intense. You cannot just let your competitors take your position in the wide global market. Geographic expansion, with careful considerations, can provide you a suitable way to accelerated growth by giving access to new customers and markets.