The Theory of Economic Development - Essay Example

The business is experiencing success and is in the peak section of the business cycle (Schumpeter 235). The business has to grow further in order to continue to experience higher profits. One of the best ways of making an already successful business more successful is expansion. Expansion can take place in various ways, the business can expand by the means of integration, the business can choose to expand and integrate vertically or horizontally. The business can use the method of backward vertical integration by taking over the electronic products it is already selling and enjoy all the profits and the business can even open new outlets through the internet and expand.

For example, the business can franchise its services to other individuals who are running websites and selling goods and services through that website. Through this method, the business will earn from sales of electronic products conducted by those companies who have purchased the franchise from the business.