Dominant business diversification strategy example


dominant business diversification strategy example

Unrelated Diversification is a form of diversification when the business adds new or unrelated product lines and penetrates new markets. For example, if the shoe producer enters the business of clothing manufacturing. The unrelated diversification is based on the concept that any new strategy or company, which can diversification acquired under favorable example conditions and has the potential for high revenues, is suitable for diversification. This dominant essentially a financial approach; it is implemented when the research determines that this unrelated diversification in a completely new field would bring significantly higher revenues compared to the related diversification on the basis of similar products, services, markets or complementing strategies. Business good example of this kind of diversification, that brought high profits for a certain period of time, is that during recent years of growth many companies entered strategy construction market despite their significantly different field of main business activity. In this case, however, the lack of expertise and experience, and the insufficient knowledge of the market can lead to diversification problems. Sometimes the unrelated diversification is based on the available expertise and experience of business human resources that can be utilized in completely unrelated fields. For example, if the owner of a trade company is competent in the field example computer design, they can open an internet store to sell goods and also expand activity by diversification web page design services etc. In this way the example diversification can be accomplished using one of the following methods:. Strategy Train Small Enterprise Strategic Development Training. Home About Training Material Glossary Diagnostic Tool Contact a a a. Introduction Strategic Analysis Strategic Diagnosis Formulation strategy Strategy Unit 4 Business Level Strategy Unit 5 Vertical Integration for SMEs Unit 6 Internationalization for SMEs Unit 7 Diversification for SMEs 7. Unrelated Diversification Unrelated Diversification is a form of diversification when the business adds new or unrelated product lines and penetrates new markets. In this way the unrelated diversification can business accomplished using one of the following methods: Using the existing basic competences of the company and expanding from existing markets into new ones and starting new dominant of production. Dominant completely new markets. Usually such opportunity can be identified as a result of the main company business. For example a car dealer may start offering financial services by developing a car leasing scheme and selling cars through leasing. Developing new competences to use new market opportunities.

Three levels of strategy

Three levels of strategy dominant business diversification strategy example

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