Capacity expansion is the strategic process businesses undertake to increase their production capabilities, service delivery, or operational scale. This often...
Capacity expansion refers to the strategic process by which a company or organization increases its ability to produce goods or provide services, often through new investments, technology, or infrastructure.
Companies pursue capacity expansion primarily to meet growing customer demand, gain market share, improve operational efficiency, introduce new products, or adapt to technological advancements and regulatory changes.
Common methods include building new manufacturing plants or service centers, upgrading existing equipment and technology, hiring more skilled personnel, and optimizing supply chain logistics.
Potential risks include overestimation of future demand, significant capital expenditure, operational disruptions during implementation, increased competition, and market volatility affecting profitability.