Faced with options for growing the business, a company needs to consider levels of risk involved with each option. Enterprise Rent-A-Car, the international car hire company, has over its history grown through the less risky strategies of product development and market development as well as the higher risk option of diversification.
With its recent takeover bid for luxury hotel chain, Orient-Express Hotels, Tata Group-owned Indian Hotels Company (IHC) looks to expand its global presence. (BBC, 19th October 2012)
With this takeover, IHC aims to achieve both product and market development in one move…
Indian Hotels Company operates 99 hotels in 56 locations across India and 16 international hotels including the Pierre Hotel in New York. Meanwhile, Orient-Express operates 46 luxury hotels, as well as restaurants, tourist trains and river cruises in 23 countries. (Click here for lesson resources)