THE MECHANISM AND CHALLENGES FOR IMPLEMENTING THE STRATEGY OF ECONOMIC EXPANSION FOR IT COMPANIES

Abstract

The article develops theoretical and methodological foundations of economic expansion as a tool for IT companies to enter international markets and strengthen their competitiveness. The theoretical and methodological basis of the study consists of the works of leading domestic and foreign scholars in the fields of strategic management, international marketing, and competitive advantages. The information base includes scientific publications, international reports, statistical and analytical data, as well as practical experience of IT companies implementing market entry strategies. The main forms of economic expansion (organic growth, mergers and acquisitions, strategic partnerships) are identified, along with their advantages, risks, and the specifics of their application in the IT industry, which is characterized by high dynamics, rapid technological development, and growing customer demands. Methodological approaches to choosing the type of economic expansion (loyal, moderate, aggressive) are substantiated depending on the life cycle stage of the market, the level of competition, risks, and the company’s strategic goals. A step-by-step approach to implementing economic expansion is developed, which includes: macro- and micro-environment analysis, internal potential assessment, SWOT analysis, selection of the form and type of market entry, risk assessment, and performance monitoring. The key success factors of IT companies’ economic expansion are determined: the ability to adapt quickly, effective resource coordination, innovative marketing strategies, compliance with regulatory frameworks, and consideration of cultural characteristics of target markets. Practical recommendations for IT companies planning to enter international markets are formulated, particularly in terms of selecting the optimal model of economic expansion, minimizing risks, and ensuring sustainable growth. It is concluded that successful economic expansion requires a comprehensive combination of scientifically grounded approaches and practical tools of strategic management, enabling companies not only to establish themselves in new markets but also to ensure long-term competitiveness in a globalized business environment.