Last edited by Masar
Sunday, August 9, 2020 | History

2 edition of implications of product diversification on a company. found in the catalog.

implications of product diversification on a company.

W. J. Blackwood

implications of product diversification on a company.

by W. J. Blackwood

  • 126 Want to read
  • 3 Currently reading

Published by Leicester Polytechnic in Leicester .
Written in English


Edition Notes

Thesis - M.A., School of Management, Leicester Polytechnic.

ID Numbers
Open LibraryOL13800208M

Firm resources and sustained competitive advantage and Hitt’s paper International diversification: Effects on innovation and firm performance in product-diversified firms and La Palepu’s paper Diversification strategy, profit performance and the entropy measure (See Table 3). TABLE 3HIGHLY CITED DOCUMENTS: Total Citations Full Citation Index For Document.   2. Diversification. Many businesses expand internationally to diversify their assets, an action that can protect a company’s bottom line against unforeseen events.

  Market diversification means extending your business offering to new market segments not previously targeted. Product diversification means adding new products or services to expand the business offering within existing markets. Both are effective growth strategies, but .   Diversification -- MotivesThe risks of single business strategies aremore severe for management than forshareholders of publicly traded ification may be motivated bymanagement’s desire to reduce ification only .

Diversification can't protect investors entirely from risk. Sometimes, financial markets lose value at the same time, and nearly every stock, bond, or fund loses value. Product diversification versus focusing on one product are the major strategies in which firms decide and engage for increasing profitability, market value, revenue or both of them. However, there is a paradox about which strategy is the best one for firms in realizing the ends.


Share this book
You might also like
Progressive Filing

Progressive Filing

Malacca Strait and West Coast of Sumatera Pilot

Malacca Strait and West Coast of Sumatera Pilot

The rustling leaves

The rustling leaves

man from Skibbereen.

man from Skibbereen.

Application of expert systems in water resources management

Application of expert systems in water resources management

Surviving Americas depression epidemic

Surviving Americas depression epidemic

Index to Canadian legal literature, 1985-2000

Index to Canadian legal literature, 1985-2000

Ultimate horse

Ultimate horse

Hatching Chicks

Hatching Chicks

Antarctica and its resources

Antarctica and its resources

Medical jurisprudence

Medical jurisprudence

Systematic anatomy of the monocotyledons

Systematic anatomy of the monocotyledons

Computer simulation of a wind tunnel test section with discrete finite-length wall slots

Computer simulation of a wind tunnel test section with discrete finite-length wall slots

Implications of product diversification on a company by W. J. Blackwood Download PDF EPUB FB2

Diversification is about building new products, exploring new markets, and taking new risks. But as risky as it can be, it may also be a great way to maintain a measure of stability. In terms of risk implications, product diversification can help a firm to reduce risk because the firm can redeploy its resources to the most productive uses, particularly when competitive conditions change.

Resources can be directed towards exploiting market opportunities (Castanias and Helfat, ; Seth et al., ) as they : Jan Mammen, Todd M. Alessandri, Martin Weiss. Business model diversification is independent from the number of products offered. While a company can be horizontally diversified, offering a great variety of products, it may.

The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm.

Generally, the final strategy involves a combination of these options. The product line diversification takes place when the company seeks to enter new market segments with a completely different product or products.

Generally speaking, product line diversification policies aim at exploring new avenues of growth opportunities, sales stability and higher profitability. Our discussion contributes to the literature on strategic diversification by advancing a set of propositions on business model portfolio implications for firm competitive advantage, as well as by.

Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 3, No.1; Sep. 23 DIVERSIFICATION STRATEGY, A WAY TOWARD THE COMPETITIVE ADVANTAGE Ebrahim Chirani Department of Business Management, Islamic Azad University. The Ansoff Matrix, or Ansoff Box, is a business analysis technique that provides a framework enabling growth opportunities to be identified.

It can help you consider the implications of growing the business through existing or new products and in existing or new markets.

Product diversification is quite a risky strategy; therefore, it is important to acknowledge the opportunity with the amount of risk which would be involved. You do not want to invest in a new product development which will be unsuccessful and can potentially sink your business.

For this reason, it is important to research the market. Diversification Strategies in the Global Retailing Industry: Essays on the Dimensions and Performance Implications DISSERTATION of the University of St. Gallen, School of Management, Economics, Law, Social Sciences big thank you goes also to the Ph.D.

students at IESE Business School for the great. study examined the impact of product diversification on the performance of construction firms in Nigeria in order to uncover the benefits and consequences of the strategy for construction firms.

Diversification is defined as the entry of a firm into new lines of activities either by the process of. Concentric Diversification: It is similar to related diversification, wherein the new business entered into by the firm is associated with the existing business by way of process, technology or market.

The newly entered product is a spin-off from the already existing facilities. For example, a dairy company producing cheese adds a new variety of cheese to its product line.

Vertical Diversification. This form of diversification takes place when a company goes back to a previous or next stage of its production cycle. For example, a company involved in the reconstruction of houses starts selling construction materials and.

A diversification strategy is that kind of strategy which is adopted by an organization for its business development. The strategy in which an organization plans as to how to enter into a new market which the organization is not in, while at the same time creating a new product.

The impact of culture on business is hard to overstate: 82 percent of the respondents to our Global Human Capital Trends survey believe that culture is a potential competitive advantage. Today, new tools can help leaders measure and manage culture toward alignment with business goals.

Corporate or product diversification represents a strategic decision. Specifically, it addresses the strategic question regarding in which businesses the firm will compete.

A single-business company that expands its strategic scope by adding new businesses becomes a diversified, multibusiness company. The means by which a company expands its strategic scope is by acquiring.

There are two types of diversification a firm can employ: 1. Related diversification: There are potential synergies to be realized between the existing business and the new product/market.

For example, a leather shoe producer that starts a line of leather wallets or accessories is pursuing a related diversification strategy. There are advantages to diversification, beyond simply expanding one's product line. For example, a diversified company is potentially better insulated against a loss of revenue in one business.

As your business develops, widening your product offering or range of services is a natural progression. However, your priority before any diversification should be to make your core business.

When a company fails, diversification is more likely to get the blame than concentration. Running multiple businesses is supposedly more dangerous than operating just one. But focus is overrated. With proper management, business diversity can deliver excellent investment s: 2. Economic diversification falls into two major types: economic (product) diversification and export diversification.

Economic diversification is generally defined as the process in which the economy becomes more diverse in terms of goods and services it produces.

Export diversification refers to deliberate policies intended to change the shares of.Product diversification is accentuated by the presence of the following main factors: 1. The development of science and technology offers scope for new products and causes obsolescence of old and existing products.

The business firms having a strong technology base and high reputation in the field venture upon to enter into a new product line.In an attempt to expand their market size and invigorate their brand, many firms take a shot at diversifying their brand. ‘Brand diversification’ commonly refers to a process of launching a new product in a new market, as seen in Ansoff’s Growth Matrix; examples of such strategy are the McCafe, Nike’s golfing collection, IBM’s business intelligence & analytics, and UberEATS.