There are three types of diversification techniques: 1. The following are the types of diversification strategies: Horizontal Diversification. Diversification is an investing strategy used to manage risk. COCA-COLA’S FUTURE GROWTH STRATEGY: DIVERSIFICATION? Diversification: The diversification growth strategy holds the greatest risk of failure. Diversification is one of the four main growth strategies illustrated by Igor Ansoff’s Product/Market Matrix: Diversification Strategies. Revenue assessment is a key component of a business model development but is sufficiently critical and complex to require separate analysis and development, and it sometimes requires more frequent updating than the overall business plan. Diversification is a strategy for growth through branching out into a new market segment, allowing your business to expand its presence and occupy a totally new space. Two types of concentration strategies are vertical growth strategy and horizontal growth strategy. These strategies are generally pursued before diversification in a growing marketplace. Diversification helped limit losses and capture gains through the financial crisis and recovery Source: Strategic Advisers, Inc. Concentric diversification. Creating new products for new markets means the business is a trailblazer. For example, a dairy company producing cheese adds a new variety of cheese to its product line. Conglomerate diversification strategy; Horizontal diversification strategy; One of the most important aspects of this strategy is that it reduces the chances of loss in business since it equally distributes different categories of products among all markets present in the region. In the context of growth strategies, there are two types of diversification. Concentric diversification involves adding … Conglomerate diversification. When a company employs a vertical growth strategy they … Bostrom’s revenue diversification support is … 1. The year 1886 was the birth year of the world renowned, mega-cap company Coca-Cola Co. it all began when a pharmacist named John Pemberton was experimenting with Diversification Growth Strategies: Diversification means adding new lines of business. The new lines of business may be related to the current business or may be quite unrelated. When the small business suffers from limited opportunities in its current line of business or product line, it may choose to diversify into areas that are not related, or are so far removed, from its current operations. This strategy of diversification refers to an entity offering new services or developing new products that appeal to the firm’s current customer base. This is achieved through expanding (or diversifying) your product or service offering to target new customers and grow profits.
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