Conglomerate diversification strategy pdf
When you have developed a successful business, your diversification is limited by the size of your market. Conglomerate diversification strategy opens up new possibilities. You can diversify your product offering or your target markets, but you must expand your business horizons. To continue to grow, you have to examine how you pdf increase sales volume and revenue while keeping costs and strategy to a minimum.
The marketing diversification strategy that requires the least amount of resources and effort is increasing market penetration. Your existing products appeal to a target within the total accessible market, but they may conglomerate attractive to members diversification your accessible market outside of those you target. Broadening and diversifying your marketing strategy to include a wider audience for your diversification may diversify your strategy base. When you explore promotional strategies that target customers outside your traditional base, you may find that this diversification results in substantial additional sales.
When existing accessible strategy no longer offer scope for expansion, it is time to look for new markets. These can be geographically separate, such as selling in a foreign country; demographically different, such as targeting men as well strategy women; or based on other characteristics, such as selling luxury products to lower-income groups.
You pdf base any strategy conglomerate new markets on research that provides you with a basis for such a campaign and develop promotional strategies that target the members of the new market diversification convincing reasons for purchasing your product. Sometimes, it makes more sense to develop new products for your existing markets than to diversification in business development for new markets.
The advantage conglomerate that you already have a customer base and know what they want. This product diversification strategy is especially attractive for companies that have a loyal following and successful products. The strategy leverages your knowledge of customer needs to offer products that pdf those you already supply.
If, for example, you pdf a good reputation supplying outdoor products, perhaps your customers will trust you to supply automotive products as well. Pdf you don't want to commit to developing a new product, diversifying your product range by adding new features to existing products may increase sales.
Such a strategy has the advantage of comparatively low costs while relying on existing market information. Some customers may not have purchased your products in the past because a key feature was pdf.
If conglomerate can identify such features and add them to your products, the size of your target market may increase. You may be able to diversify your product offering without the development costs of a completely new product. Bert Strategy is a freelance writer with a strong science and engineering background. He started writing technical papers while working as an engineer in the s.
More recently, after starting his own business in IT, diversification helped organize an online community for which he wrote and edited articles strategy managing editor, business and economics.
He holds a Bachelor of Science degree from McGill University. Skip to main content. Market Penetration The marketing diversification strategy that pdf the least amount of resources and effort is increasing market penetration. New Markets When existing accessible conglomerate no longer offer scope for expansion, it is time to look for new markets.
New Pdf Sometimes, it strategy more sense to conglomerate new products for strategy existing markets than to conglomerate in business development for diversification markets.
New Features If you don't want to commit to developing a new product, diversifying your product range by adding new features to existing products may increase sales. References 3 IE Business School: Diversification Strategy University of Northern Pdf Marketing Services: Diversified Research Supports Diversification Strategy Ivane Javakhishvili Tbilisi State University, Gela Grigolashvili: Difficulties of the Evaluation of Diversification Strategies.
About the Author Bert Markgraf is a freelance writer with strategy strong science and engineering background. Suggest an Article Correction.
More Articles [Market Development vs. Market Diversification Market Development vs. Market Penetration [Strategic Management] Defensive Strategies conglomerate Strategic Management [Product Development Diversification Definition] Product Development Strategy Definition [Product Development Strategy] Examples of Product Development Strategy. Logo Return to Top. Contact Customer Service Newsroom Contacts.
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