Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Diversification Strategy - Essay Example

Comments (1) Cite this document
This paper will critically examine the argument that firms in emerging economies should pursue a diversification strategy because this corporate strategy may have a positive impact on their organization as it generally contributes to wealth creation…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.1% of users find it useful
Diversification Strategy
Read TextPreview

Extract of sample "Diversification Strategy"

Download file to see previous pages This research tells that in order to survive in today’s market and especially when SMEs experience high competition from the rival companies or a decline in their profit levels, a diversification strategy will be of great importance to the continuity of the SMEs. Emerging economy firms tend to expand culturally, geographically and economically. As such, diversification may enable these firms to gain various benefits. Diversification entails three dimensions: the product, the market, and the technology of the firm. Another definition by Chandler is that diversification refers to the simultaneous departure from the present product line and the present market structure. Also, Ansoff defined diversification as entailing product, market, and change in the role of the management of the firm. During this process, a firm has to acquire new competencies, skills, and techniques both for the new market and the also for the new product. He further emphasizes that the firm has to engage in changing the role of management of the firm. Further, Grandstand defined technology diversification as a move in which the firm improves the performances or the number of functionalities of existing products through the use of new technology. Therefore, diversification can also be defined as the process by which a firm enters into a new market, without essentially leaving its obtainable products, such that it produces a new product or products. This strategy needs a change in the organization; it should also develop new technologies within the firm. In addition, Rumelt implied that there is global diversification which is defined as a strategy of locating production activities in foreign jurisdiction that are relatively diverse in terms of legal structures, national cultures, ways of doing business, planning and implementation of international manufacturing, which is a process that deals with issues that arise when SMEs firms in emerging economy locate production facilities in a particular site. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Diversification Strategy Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
Diversification Strategy Essay Example | Topics and Well Written Essays - 2000 words. Retrieved from
(Diversification Strategy Essay Example | Topics and Well Written Essays - 2000 Words)
Diversification Strategy Essay Example | Topics and Well Written Essays - 2000 Words.
“Diversification Strategy Essay Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ycole added comment 1 year ago
Student rated this paper as
I never thought 2250 words essay could be written in such a free manner. I loved the idea of this essay. Will definitely use it for my own work!

CHECK THESE SAMPLES OF Diversification Strategy

Case analysis on PepsiCo's Diversification Strategy in 2008

...?Running head: PepsiCola PepsiCola’s Diversification Strategy of 2008 Central Issue How would PepsiCola improve its international sales and profits? Although the company was able to increase its profitability and diversify its market since its acquisition of Quaker Oats Company, its international sales did not reach an expected increase in returns. It still had low relative profit margins in the international business. This implied a need for a new organizational structure which is expected to better exploit strategic fits between the company’s international operations. Moreover, analysts also set forth a need for company strategy changes to improve the profitability of its international operations and to usher in share price appreciation...
10 Pages(2500 words)Essay

Diversification Strategy at Microsoft

...implemented a diversification strategy that allowed the firm to move into other market segment beyond the computer industry. The gaming industry has been exploited by the company in a very effective manner. The Xbox 360 competes head on with the Wii and Playstation 3. As the arrival of the Christmas season is upon us Microsoft must capitalize on the season since the gaming activity of the company is seasonal. Santa Claus is often asked for video games from kids. The organization must analyze the most effective way to exploit the sales of the Windows 8 operating system. The presence of Bill Gates in the board of directors raises the probability that the firm will be run effectively. Microsoft must hire...
9 Pages(2250 words)Case Study

Type of a Diversification Strategy on the Part of Waitrose

... of Bargaining power of Suppliers Buyers Threat of Substitute product Waitrose appears to have taken the task of managing supplies quite seriously, as is apparent in its approach of playing an expanded role in managing the supply base, with the aim of inculcating the thought amongst growers as being known as ‘Waitrose growers’. Richard and his team has adopted the strategy of streamlining the supplies by taking into confidence the suppliers and growers. This in turn becomes type of a diversification strategy on the part of Waitrose, which will result in consumption of some of the resources of the company. in addition a good number of personnel from Waitrose will be busy with regulating the supply chain. This means the company...
7 Pages(1750 words)Research Paper

Foundation of Marketing: A Diversification Strategy of PGI Company

...INTRODUCTION It takes a lot of time and effort to introduce a new product. Effective marketing is a continuous process. The marketer will nevercompletely know the customer; he/she can only get a brief preview of the consumers as consumers come to the transaction from different perspectives. Customers are dynamic human beings in business situations. A diversification strategy requires that before PGI offers a new insurance product into the marketplace, home insurance plan, the company must plan step-by-step how it will conceptualize, build and market the product to its existing and new customers. One effective way of starting the product development process is by focusing on three types of audit: the customer audit, the internal audit...
6 Pages(1500 words)Assignment

A vertical integration strategy and a corporate diversification strategy

... economies of scope such as its ability to allocate capital, reduce risk, or avail of tax breaks. It can also exploit anticompetitive economies of scope such as multipoint competition and market power advantages. Lastly, there are also employee incentives to diversify that result in management getting higher salaries by managing a bigger business. Research has shown that related diversified firms outperform unrelated diversified firms. How well a firm's diversification strategy creates sustained competitive advantage depends on the value, rarity, and imitability of the strategy. If very few competing firms exploit the same economies of scope through diversification; if the degree of imitation through direct duplication or substitutes...
2 Pages(500 words)Essay

The strategy of Unrelated Diversification on the Example of Xerox

...In unrelated diversification, companies venture into products and markets which are unknown to them and do not fit into the existing resources and capabilities of the firm. The overall idea is to increase the size of the firm, achieve more flexibility as well as better reception in the capital markets. It is also because of this reason that unrelated diversification has little to do with the existing business of the firm and it adapts this strategy to further expand and tap into the markets which are not the traditional markets for the firm. Xerox Corporation is a multinational document management firm involved in the production and selling of printing related products and other services. It was founded in 1906 and produced the first...
2 Pages(500 words)Essay

Microsoft's Diversification Strategy

... Microsoft's Diversification Strategy Introduction Microsoft Corporation was started way back in 1975 by Bill Gates and Paul Allen. They started the company and named it as Microsoft. Both of them had great plans to grow the business in a huge way and increase the level of business to great heights managing people and the resources in the most optimum way. The company has grown at a good pace over the last few decades and has continued on its journey to be the leader in global market in the field of computer software developing and has got the maximum market share. The company has its vision of setting up a computer in every home across the globe. It has looked to provide the best quality service to the customers at cheaper rates...
10 Pages(2500 words)Essay

Diversification Strategy

...Diversification Strategy Diversification Strategy I was not surprised to learn that Dartmouth owns and operates a ski resort, the Dartmouth Skiway. This is because Dartmouth is popular for its brief lift lines and low rates for hiking. With the presence of a campus, the old region of Dartmouth always has a decent combination of students, faculty, and civilians at the slopes of Ragged Mountains. In addition, Dartmouth University has a strong record of a small, family-open attitude. It would only be right for Dartmouth University to exploit this popularity and rich environment by creating a ski resort for its students and civilians (Helfat & Eisenhardt, 2004). With the help of ski patrol, ski guides, and ski teams from Dartmouth University...
1 Pages(250 words)Assignment

Diversification as a Corporate Strategy

...Diversification as a Corporate Strategy Firms that Diversify are Always Running Away from Something An integral component of corporate strategy is selecting the right portfolio for the company to compete effectively, especially in terms of growth strategy. In the currently evolving market environment, it has become essential for business leaders to have a precise understanding of the varying strategic alternatives that are best suited for a company’s operations in different types of markets or industries. In this regard, the business environment that comprises of the competitive activity also plays a fundamental role in deciding the strategic choices that are better suited for the company or organization in general. One of the most...
8 Pages(2000 words)Essay

Pepsi Company 2014 Diversification Strategy

...Pepsi Company Diversification Strategy al Affiliation) Background Information Pepsi Co, Inc, was founded 50 years ago as a merger between a snack company (Frito-Lay) and a soft drink global giant (Pepsi Cola). At that time, its product portfolio included Mountain Dew, Pepsi Cola, Fritos Lay’s Cheese, Rold Gold, and Ruffles. Before the merger, Pepsi Cola had been existence for approximately 67 years (Gamble, 2014). Pepsi Cola was established in 1898 when a renowned pharmacist came up with a formula for carbonated drink that he named Pepsi Cola. Frito-Lay (the Salty Snack business) was established in 1932 as a manufacturing and distribution business for potato chips. Introduction Pepsi Company is one of the largest beverage and Snacks...
8 Pages(2000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Diversification Strategy for FREE!

Contact Us