Procter & Gamble
Procter & Gamble
Hell to the prof
Concentric diversification occurs when a firm adds related products or markets. The goal of such diversification is to achieve strategic fit. Strategic fit allows an organization to achieve synergy. In essence, synergy is the ability of two or more parts of an organization to achieve greater total effectiveness together than would be experienced if the efforts of the independent parts were summed. Conglomerate diversification occurs when a firm diversifies into areas that are unrelated to its current line of business. Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is improved profitability of the acquiring firm. Little, if any, concern is given to achieving marketing or production synergy with conglomerate diversification.
A diversification growth strategy involves a company expanding its operations by entering into new markets or developing new products that are distinct from its existing offerings. This approach aims to reduce risk by spreading investments across different areas, thereby minimizing the impact of poor performance in any single sector. Diversification can be achieved through related diversification, where new products or markets are connected to existing ones, or unrelated diversification, which involves venturing into entirely different industries. Overall, the strategy seeks to enhance revenue streams and improve long-term sustainability.
A company should consider diversification when it seeks to reduce risk by spreading its investments across different markets or products, especially if its current market is saturated or experiencing decline. Additionally, diversification can be strategic when a company has excess resources and capabilities that can be leveraged in new areas. Entering related markets can also create synergies, enhancing overall competitiveness and operational efficiency. Lastly, diversification can provide opportunities for growth and innovation in response to changing consumer demands or technological advancements.
Procter & Gamble
Some examples of research interests related to sustainable agriculture include soil health and fertility, water conservation and management, crop rotation and diversification, agroforestry practices, and the use of organic farming methods.
crops
Related diversification occurs when a company expands its existing products or markets.
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.
Hell to the prof
market development, market penetration, product development, diversification
aaa
Related diversification
concentric diversification Type of diversification where a firm acquires or develops new products or services (closely related to its core business or technology) to enter one or more new markets.
Hell to the prof
balance