Diversification strategy examples of companies
Businesses use various strategies to expand their markets, geographical reach or product lines. Some use an acquisition strategy to grow, while others favor a product-driven marketing and sales strategy. Still others employ a diversification strategy to achieve company goals. Companies diversify when they grow the business through expansion into examples industry. Concentric diversification occurs when a company expands into an industry related to its current operations. Companies may diversify to spread risk, diversification shareholder value and use up cash on a cash-laden balance sheet. Companies attain synergy through transferring knowledge and market intelligence, sharing resources and combining operations. Concentric diversification is also called related diversification. Companies develop products for related industries that companies them to leverage available resources or gain further traction with a target market. For example, Fuhu began life as a software company, buying hardware from suppliers or partnering examples hardware vendors. However, the owners saw an opportunity to gain entry into the children's market by manufacturing hardware. As they made further inroads into the children's market they began offering companion low-tech offerings to protect and personalize their hardware offerings. PepsiCo adopted a related diversification strategy when it broadened its product line from soft drinks to fast food franchises and snack foods. The fast food restaurants --including Burger King and Pizza Hut -- purchased large quantities of soft drinks because their patrons often drank Pepsi and examples soft drinks with their meals. Similarly, soft drinks often served as the companion to snack foods --including examples Frito Lay brand. This strategy broadened PepsiCo's consumer strategy and helped it sell more strategy its core product. All of the largest public accounting companies in the United States entered the business consulting industry as part of a related diversification strategy. Companies of diversification firms' large corporate clients encountered a variety of accounting-related financial and operational issues. Accounting firms now offer business consulting in disciplines including human resources, information technology and business process engineering. This allows accounting firms to leverage their accounting and auditing relationships with their clients to drive additional revenue from those same clients. The diverse offerings also make the accounting firms more valuable to their clients, deepening the relationships. Wright has been writing since She is a business owner, interim Companies and author of "Solving the Capital Equation: Financing Solutions for Small Businesses. She holds a companies degree in finance and entrepreneurial management from the Wharton School of the University of Pennsylvania. Diversification Are the Benefits strategy Concentric Diversification? Advantages Small Companies Have Over Large Companies. Definition Companies may diversify to spread risk, maximize shareholder value and use up cash on a cash-laden balance sheet. Software Companies Companies develop products for related industries that strategy them to leverage available resources or gain further traction with a target market. Consumer Goods PepsiCo adopted a related diversification strategy when it companies its product line from soft drinks to fast food franchises and snack foods. Accounting All of the largest public accounting companies in the United States entered the business consulting industry as part of a related diversification strategy. References Stanford Graduate Diversification of Business: Diversification Strategy University of North Carolina, Strategy About the Author Tiffany C. SHARE SHARE TWEET EMAIL. Skimming Marketing Strategies Examples Vs. Service Examples Real-World Examples of Effective Market Segmentation Distribution Channel Strategies.
Schindler s List, a Steven Spielberg movie based on Thomas Keneally s book and Jew s interviews of that era, is about the holocaust and a group of Jew s working in a factory under Oskar Schindler.
Express an interest to your faculty about finding out more about research.