0
To spread the risks of the investments. In simple terms, it is to not put all the eggs into one basket. Also, through diversification, in times of crisis, some of the investments can be pulled out first to cut losses while others might still be making profits.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What is product diversification?
The process of expanding business opportunities through additional market potential of an existing product. Diversification may be achieved by entering into additional markets and/or pricing strategies.
Examples of diversification?
crops
What is the difference between diversification and expansion?
expansion
What are the reasons for the change from logwood to mohogany?
price, demand for the product and the climate
What is diversification strategies of reliance industry?
Reliance is pursuing unrelated diversification strategy, it is conglomerate and has expanded into various markets; namely power sector, telecommunications, infrastructure, retail etc.
What is product diversification?
The process of expanding business opportunities through additional market potential of an existing product. Diversification may be achieved by entering into additional markets and/or pricing strategies.
What are some examples of unrelated diversification?
moving from what you were offering to a total new product, for example,if you were manufacturing clothes and then you move to food industries is a good example of unrelated diversification.
Examples of unrelated diversification?
Unrelated diversification means moving from what you were offering to a total new product. This is like if you were offering clothes through a cloth industry, then moving onto the food industry.
Can you give some examples of intensive growth strategy in a company of their product?
market development, market penetration, product development, diversification
What is the difference between product diversification and product differentiation?
Product diversification means that you will have several different types of products for sale, such as selling school supplies as well as toiletries. I think product differentiation means that you will have several different types of the same product available, such as the same baseball hat in several colors or with different team logos. Here's how about.com defines "product differentiation"--"Developing unique product differences with the intent to influence demand".
What are the pros and cons of the product diversification strategy that Zippo has been following recently?
They have a good brand name
What has the author Kripa Shanker written?
Kripa Shanker has written: 'Product diversification, growth and profitability in the corporate private sector in India'
What are diversification?
Different diversification rates for two clades of animals.
What has the author Brune Hake written?
Brune Hake has written: 'New-product strategy' -- subject(s): Diversification in industry, New products
What is supplemental diversification?
Different diversification rates for two clades of animals
What are Diversification Rates?
Different diversification rates for two clades of animals.
What is the product market expansion grid?
Ansoff's Product-Market Expansion Grid Ian Ansoff has proposed a useful framework called the product/market expansion grid for detecting new intensive growth opportunities. There are four strategies, one for each of the quadrants: Market Penetration StrategyWhen the product is in the current market, it can still grow. There are three major approaches to increasing current product's market share:1. Encourage current customers to buy more.2. Attract competitor's customers.3. Convince non-users to use the product. Market-Development StrategyWhen the current product is launched in a new market, there are three approaches to develop the market:1. Expand distribution channels.2. Sell in new locations.3. Identify the potential users. Product-Development StrategyWhen a new product is launched in the current market, the intensive growth strategies could be to:1. Develop new features.2. Develop different quality levels.3. Improve the technology. DiversificationWhen a new product is launched in a new market, diversification makes good sense as better opportunities are found outside the present business. The diversification strategies are of three types:1. Concentric Diversification Strategy: Develop new products with the earlier technology for new segments2. Conglomerate Diversification Strategy: Develop new products for new markets.3. Horizontal Diversification Strategy: Develop new products with new technology for old customers. OLD PRODUCTS NEW PRODUCTS OLD MARKETS Market Penetration Product Development NEW MARKETS Market Development Diversification
