Esport's Three Types Of Diversification In Sports

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According to the marketing director, Highflyer Sport public limited company has saturated the Singapore high streets and settled a store in every major shopping center. To satisfy Highflyer Sport Plc’s customers more, they are trying to branch out with an internet-based “mail order” which is also called as “eSport”. By using “eSport”, company gives their customer to offer them their product at lower price therefore company can increase their number of sale. This confidential report is to demonstrate how various business expansions on eSports works and this report also summaries the points raised by the marketing director, accountant manager, the commercial director manager and general manager at the meeting.

Based on accountant manager, 5
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Depending on “Entrepreneur”, diversification means by location, adding product service, customers and markets to company’s portfolio; it can be a risk-reduction strategy.
There are three types of diversification which are concentric, horizontal and conglomerate. The following information of three types of diversification is based on startupbizhub.
Firstly, concentric diversification is that existing similarities between the industries in term of the thchnological standpoint. Through this, the firm may apply and compare its technological know-how to an advantage. It aims to raise the market value of product thus gain a more profit.
Secondly, the horizontal diversification which means services or products those are in a sense not related technologically to certain products. This kind of diversification is more efficient is the current clients who is loyal to the existing services or products and if the new products are adequately promoted and well-priced. However, the newest products are marketed in the same way that may cause instability because the strategy raises the new products’ dependence on an existing
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As this report mentioned, company needs to issue bonds instead of issuing more share because company will lose controlling of decision-making. However, issuing bonds also should be adequate since bonds can pledge specific assets and company must pay interest until maturity and company has to pay competitive interest to attract other investors. Next, company needs to diversify their product instead of focusing only sportswear because risk of focusing only one product is dangerous. Company may diversify into lots of kind products such as organic food and smartphone which helps profit to be raised because of customers can be diversified into variety and that causes more

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