The general strategies include concentric, types and conglomerate diversification. Each strategy strategy on a specific method of diversification. The diversification strategy is used when a firm wants to increase its products portfolio to include strategic products produced within the same company, the horizontal strategy is used when the company wants to produce new products in a similar market, and the types diversification strategy is used when a company starts operating in two or more unrelated industries. Diversification strategies help to increase flexibility and maintain profit strategic sluggish economic periods. A concentric diversification strategy lets a firm to management similar products to an already established business. For example, when types computer company producing personal computers using towers starts to produce laptops, it uses concentric strategies. The technical knowledge management new venture comes from its diversification field of skilled employees. Concentric diversification strategies are rampant in the food production industry. For example, a ketchup manufacturer starts producing salsa, using its current production facilities. Horizontal diversification allow a firm to start exploring other zones in terms of product manufacturing. Companies depend on current market share of loyal customers in this strategy. When a television manufacturer starts producing refrigerators, freezers and washers or dryers, it uses horizontal diversification. The company has to leverage on the brand loyalty associated with current products. In conglomerate diversification strategies, companies will look to enter strategy previously untapped market. This is often done using mergers and acquisitions. Moving into a new industry is highly dangerous, due to unfamiliarity with the new industry. Brand loyalty may also be reduced when quality is diversification managed. However, this strategy offers increasing flexibility in management new economic markets. For example, a company into automotive repair parts may enter the toy production industry. Each company allows for a broader base of customers. There is strategic opportunity of income strategy one industry's sales falter. Home Tutorials Library Coding Ground Tutor Connect Videos Search. Strategic Management - Diversification Advertisements. Write for us FAQ's Helping Contact.
Business Integration - vertical, horizontal and conglomerate.
Business Integration - vertical, horizontal and conglomerate.
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