0
In a business, diversification is a way for a company to reach more customers by adding more to what they do. Think about NIKE. They started out making running shoes and sold them to elite athletes. Now they sell clothing, sports equipment, even water bottles! So they expanded their client base by "diversifying" or "adding to" the stuff they sell. NOTE: Not all companies sell products. Some companies offer more services as a way of diversification.
What else can I help you with?
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.
What is related diversification?
Related diversification occurs when a company expands its existing products or markets.
What is the diversification of Risk?
Diversification of risk means reduction of risk. Merely reducing risk (and thereby reducing return proportionately) doesn't amount to diversification. Diversification in its true sense represents systematic reduction of risk in such a manner that return per unit of risk increases. By K S JOLLY
Diversification - who benefits more company or shareholders?
Diversification can benefit both companies and shareholders, but in different ways. For companies, diversification can reduce risk by spreading investments across various markets or products, potentially leading to more stable revenue streams. Shareholders benefit from diversification as it can lead to increased stock value and reduced volatility, providing a safer investment environment. However, if a company's diversification is poorly executed, it may lead to inefficiencies that can negatively impact shareholder value.
When does 'concentration of credit risk' occur?
Credit concentration risk is a result of loan portfolio insufficient granularity (large single name exposures) or insufficient sectoral or regional diversification.
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.
What is genetic variability in a species with an example?
It is a diversification of traits within a species. An example of this is ladybugs with different numbers of spots.
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.
What are diversification?
Different diversification rates for two clades of animals.
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 are the pros and cons of the product diversification strategy that Zippo has been following recently?
They have a good brand name
What is unrelated diversification?
Unrelated diversification is a form of production expansion in which the firm enters into the production of a good or service that is unrelated to previous business activities. An example would how the Virgin conglomerate produces music but also has an airline. This is a key factor of economies of scope.
When is a company likely to choose related diversification and unrelated diversification?
Hell to the prof
What is related diversification?
Related diversification occurs when a company expands its existing products or markets.
What are the major advantage and disadvantage of concentric diversification?
what are the major advantage and disadvantage of concentric diversification?
Does Google apply unrelated diversification?
Google applies many different types of diversification.
