ipl-logo

The Pros And Cons Of Diversification Strategies

967 Words4 Pages

diversification strategy as a whole, is to provide new products for new markets. This term is often associated with the expansion in the region, and is not associated with the ongoing activities of the organization. This strategy requires great accomplishment for investment, it can be carried out usually only by large organizations. In its application, there are great difficulties in achieving effective governance. As a fact, the organization of the scheme is a response to these difficulties. The trend in recent years is that the organization is trying to diversify within its competence, using their full experience, as described in the horizontal diversification. Diversification is a change in the product mix and market reorientation. Diversification …show more content…

It is this kind of diversification that is based on any common clearly visible (or not) technical and technological features of its production. However, this species is only conditionally heterogeneous type diversification as it retains the homogeneity of the relative identity value for the consumer or the relative identity of the manufacturing process. For the identity of the consumer price it is essential, as this type of product can meet the requirements of quasi identical. For example, HealthCare Products Inc. Schering-Plough. decided to release the lotion for their customers, which can be packaged to fit comfortably in the pockets of consumers, handbags and sports bags. The similarity of these two products is that it is designed for the same consumer. Horizontal diversification will be beneficial for society and for customers who were waiting for the changes, which finally made. This subspecies conditionally heterogeneous diversification need for a special assignment, as well as the main criterion in this case would be: - they completed the production process; - Tying the process base. subspecies described is the horizontal direction conditionally heterogeneous

Show More
Related

  • Fraser Foods Case Study Assignment

    1475 Words  | 6 Pages

    This structure will remain mainly functional but with a more flexible and adaptable system that will allow the company to focus on a project as well as the day to day running of the business. The company is expanding, they have added two new directors to the company’s structure to support this expansion. Kathryn Hannah will be promoted to Director of Organizational Development. Kathryn will be responsible for the change process and she will continue to run the HR department but will take the burden of directive control away from Laura Bolton, leaving Laura to focus on the purchasing department. Sidra Aktar will be joining the company as the new Marketing Director.

    Read More

  • Fraser Foods Case Study

    888 Words  | 4 Pages

    This structure will still remain mainly functional but with a more flexible and adaptable system that will allow the company to focus on a project as well as the day to day running of the business. The company is expanding, they have added two new directors to the company’s structure to support this expansion. Kathryn Hannah will be promoted to Director of Organizational Development. Kathryn will be responsible for the change process and she will continue to run the HR department but will take the burden of directive control away from Laura Bolton, leaving Laura to focus on the purchasing department. Sidra Aktar will be joining the company as the new Marketing Director.

    Read More

  • How To Share Of Garbage Bags

    932 Words  | 4 Pages

    Executive Summary: There were three brands of garbage bag rolls: Limp-o-Lixo (Ad-Lider), Dover Roll (Fort Roll) and Koleta (Colmag). Ad-Lider Embalagens, SA was planning on introducing a new product line of handled garbage bags named as Fecha Facil. They wanted to know the preferences of target audience so that the impact of such attributes can be used for the deduction of success rate for Fecha Facil. Since a huge amount was invested into this product, thus they wanted a good return as well. The research conducted was comprised of mainly individual and focus group interviews in the market to be tested.

    Read More

  • Comparison Of Home Depot And Lowe's

    695 Words  | 3 Pages

    For the Home Depot organizations, they have managed to stay in line with their competition and align their strategies to fit the market. Some things that Home Depot’s management can do at the functional level to distinguish them from organizations like Lowe’s is continue to analyze the market and it’s changing trends. This will allow them to understand consumer buying habits and react to any changes. They need to continue with changes to its brand image in order to attract a broader customer base.

    Read More

  • Marketing: A Case Study Of Sephora's Marketing Mix

    1085 Words  | 5 Pages

    Diversification: Upstream integration with suppliers, Sephora exchanges data collected from their digital channels with their manufacturers for new products development. Role of Sephora digital channels in company’s marketing mix Product: Sephora has more than 250 brands with approximately 13,000 products which include skin care, makeup, bath, fragrance, beauty accessories, hair products as well as other beauty and body care products and each of these categories has various sub-categories (CNBC, 2017). The company's product offering is able to meet the diverse customers' needs. Even though most of the products sold by the company were manufactured by so many other brands, each of these brands have a different product concept which aligned

    Read More

  • Toyota General Environment Analysis

    1506 Words  | 7 Pages

    An organization that has a team or horizontal style of work structure and management is called as contemporary organization. Instead of a strict hierarchy, the power is spread out to the whole team in the contemporary organization. It is a more responsive and flexible. Traditional organization is changed to the contemporary organization of business. The traditional organization style concentrated on a pyramid order, with supervisors and managers controlling all components of the representatives beneath them, including interpersonal connections, ventures and disciplinary activities.

    Read More

  • Panera Bread Research Paper

    629 Words  | 3 Pages

    • Rivals face high exit barriers Very High Potential Entrant Pressure • High entry barriers • Strong product differentiation • Menus change constantly with

    Read More

  • Porter's Five Forces For Bicycle Industry

    724 Words  | 3 Pages

    Besides that, product differentiation is one of the threats of new entrants. Starting a new business we need to use a lot of money for advertising to attract customer, but we have to create our new things that cannot found in others competitors. For non-traditional barriers to entry, we have unique business model. We created a business with a unique design and establish a network of relationships that makes the business model work so that no people can easily to copy our

    Read More

  • Diversification Strategy Of Amazon

    1112 Words  | 5 Pages

    Amazon has achieved many milestones from starting in the founder’s garage in 1994 to the growth in revenue to US$147.8 million in 1997 and then to the revenue growth of US$177.866 billion in 2017 (Amazon, 2018a, Amazon, 2018b and Jurevicius, 2018). These milestones were achieved through tenacious focused strategies of meeting their customers’ needs and wants. These strategies have maintained and expanded their customer base locally and internationally and have increased its market shares and profit over the last two decades. In addition, projection for the company’s growth and expansion for the next three to five years looks positive as it predicted to grow at the same rate with its expansion internationally and continued focused in satisfying consumers’ wants (Amazon, 2018a). Although, some factors such as governmental policies, legal issues and natural disasters could pose a threat to Amazon’s growth plans, the management team led by the founder and Chief Executive Officer (CEO) are working on mitigating the risk (Amazon, 2018a).

    Read More

  • Advantages And Disadvantages Of Henry Mintzberg's Prescriptive Schools Of Strategy

    1331 Words  | 6 Pages

    Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. Secondly, the experience curve and the Profit Impact of Market Strategies model which identified a number of strategic variables. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. Generic strategy was developed strategies under this school, especially it can identify position in the market. Advantages: -Provide content in a systematic way to the existing way of looking at strategy -Particularly useful in early stage of strategy development, when date is analyzed -This school emphasis on analysis and calculation can be a very strong support to the strategy development process -This strategy suit with big businesses or organization which have ability for operate effective market research in the environment

    Read More

  • Coca Cola Product Differentiation Strategy

    785 Words  | 4 Pages

    1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized.

    Read More

  • Swot Analysis Of Smoothie

    743 Words  | 3 Pages

    Therefore, new companies could enter without needing large amounts of capital. • Product Differentiation: Although there is some level of differentiation among ingredients and flavors, predominant similarities exist among current products. New companies could

    Read More

  • Fendi Competitive Advantage

    1100 Words  | 5 Pages

    The brands set different prices of its product base on design, size and heritage. This is due to brand loyalty that each brand possesses by each luxury group. Particularly put extensive brand portfolio to cover different customer segments. As such, the brand is niche in the market leading to rivalry of the competitors in this industry to

    Read More

  • Assignment On Diversity Management

    1107 Words  | 5 Pages

    INTRODUCTION This assignment is set up into two parts. The first part will be the theoretical part, where we will be discussing the concept of the chosen topic, Diversity Management. We as a group will collect definitions from various sources in order to get a broader understanding of Diversity Management. Thereafter we will look at the analytical part of Diversity Management.

    Read More

  • Swot Analysis Of Giant Supermarket

    1051 Words  | 5 Pages

    Introduction The following strategic analysis report was carried out for Giant Hypermarket in Malaysia. Giant Hypermarket also popularly known as “Giant” is a subsidiary of Dairy Farm International. The objectives of the study is to advise the Board of Directors into a possibility to revisit and redesign the current business strategy based on the blue ocean strategy (Kim and Mauborgne, 2005) to provide value based innovation via cost reduction with increased value for buyers and to ensure sustainable business operation in Malaysia. Additionally, the analysis also includes the possibility of developing a global strategy for Giant.

    Read More

More about The Pros And Cons Of Diversification Strategies

Open Document