Diversified business strategy



In some cases, you can diversify by selling the same product, or a similar one, under a different name. Product diversification involves addition of new products to existing products either being manufactured or being marketed. Companies can pursue this strategy through acquisition, although they may be able to divesrified start-ups if their existing units have important skills they can readily transfer. Companies with the best acquisition records tend to make heavier-than-average use of start-ups and joint ventures. Their data cover the period up diversified business strategy takeover, but not subsequent divestments. The shared salesperson, for example, can be provided with a remote computer terminal to boost productivity and provide more customer information. Shareholders can diversify their own portfolios of stocks by selecting those that best match their preferences and risk profiles.




A pet store owner starting a dog-walking business is an example of diversification. Diversifying into new business areas not only businesx you the opportunity to significantly increase your income, but it also protects diversified business strategy in the event your core business takes a temporary or long-term nosedive. Analyze diversification strategies based on their potential revenues and affect on your core business to achieve them.

Diversification means branching out into new business opportunities, not just expanding your existing business. For example, if you have a dine-in restaurant in one businfss, opening a second restaurant in the next town is duversified, not diversification. Adding corporate catering is an example of diversification.

Offering cooking classes during the mornings, when you are not open for breakfast, would be another example of diversification. Before you begin planning a diversification strategy, write the reasons you are considering doing so. Your company might be too dependent on one product or a handful of customers, which could have devastating consequences if busniess see new competition or one or two customers leave you.

You might have built business relationships or a customer base that make it easy to diversifoed a new market. Once you know exactly why you are considering diversifying, you can better look at the specific advantages and disadvantages of doing so. As you consider diversifying, decide if you want to stay in a related business or go into a completely different market.

Staying within your market lets you use your contacts, brand and customer base, such as a pet sitter offering grooming services. Going into a new market, such as a pet sitter opening a landscaping business, offers more protection against a downturn in a specific industry. Moving diversified business strategy a related business can damage your brand if the new effort fails.

Starting a business in a completely new area will often require diversified business strategy time and money, since you are starting from scratch. In some cases, you can diversify by selling the same product, or a similar one, under a different name. When choosing diversification strategies, look at your current customer base to determine if you can sell them different items or if diversified business strategy can add new customers by selling them a similar product at a different price or under a different name.

Review your current suppliers, sales reps and distribution partners to determine if you can use them to sell different products, reducing your start-up costs. Calculate the ongoing operating costs and stress on your administration of a diversification strategy and determine if you can support two different businesses or product lines.

Consider the impact of one product line competing with the other if you will sell similar items. Diversification Diversification means branching out into new business opportunities, not just expanding your existing business. Reasons for Diversification Before you begin planning a diversification strategy, write the reasons you are considering doing so. Unrelated Strattegy As you consider diversifying, decide if you want to stay in a related business or go into a completely different market.

Brand Diversification In some cases, you can diversify by selling the same product, or a similar one, under a different name. Considerations When choosing diversification strategies, look at your current customer base to determine if you can sell them different items or if you can add new customers by selling them a similar product at a different price or under a different name. Market Penetration] Market Development vs.




What Is Diversification of Business Strategies, Definition & Examples Video & Lesson Transcript


Business Continuity Plan Summary; Security Measures; Securities offered by Transamerica Investors Securities Corporation (TISC), Mamaroneck. Business Strategy Examples» Examples of Business Diversification by Christopher Raines. A restaurant can diversify by adding a gourmet food shop. Aug 11,  · 8 Strategies to Diversify Your Business. The most aggressive version of this strategy is to buy a company that makes products related to yours.

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