The Pros And Cons Of Diversification Strategies

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diversification strategy as a whole, is to provide new products for new markets. This term is often associated with the expansion in the region, and is not associated with the ongoing activities of the organization. This strategy requires great accomplishment for investment, it can be carried out usually only by large organizations. In its application, there are great difficulties in achieving effective governance. As a fact, the organization of the scheme is a response to these difficulties. The trend in recent years is that the organization is trying to diversify within its competence, using their full experience, as described in the horizontal diversification. Diversification is a change in the product mix and market reorientation. Diversification…show more content…
It is this kind of diversification that is based on any common clearly visible (or not) technical and technological features of its production. However, this species is only conditionally heterogeneous type diversification as it retains the homogeneity of the relative identity value for the consumer or the relative identity of the manufacturing process. For the identity of the consumer price it is essential, as this type of product can meet the requirements of quasi identical. For example, HealthCare Products Inc. Schering-Plough. decided to release the lotion for their customers, which can be packaged to fit comfortably in the pockets of consumers, handbags and sports bags. The similarity of these two products is that it is designed for the same consumer. Horizontal diversification will be beneficial for society and for customers who were waiting for the changes, which finally made. This subspecies conditionally heterogeneous diversification need for a special assignment, as well as the main criterion in this case would be: - they completed the production process; - Tying the process base. subspecies described is the horizontal direction conditionally heterogeneous

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