Pets R Us has recently acquired Caring for Pets and Pet Go Round. Since they all are similar in market share, Pets R Us is planning to rebrand Caring for Pets to be a pet daycare facility and Pet Go Round to be a veterinary clinic and groomer. This is an example of which strategy?

Answer: external growth strategy

Explanation:

External Growth

External growth refers to the process of advancing the out put of the company using external resources.

This can occur when the company decides to work with another company which can be referred to as merging of two companies or forming partnership.

External growth

Example:

Mergers and acquisitions strategies

- This is done by extending the business geographically or extending the extent to which the product and the market reach.

and Strategic Alliance strategies for example joint ventures

The company can also work with another company that sells similar products which reduces the competition amongst each other and improve production and bargaining power with their suppliers.

It also improves financial efficiency, speed in preparation of the business and tax efficiency.