A pet store owner starting a dog-walking business is an example of diversification. Diversifying into new strategy areas not only gives you the opportunity to significantly increase your income, but it also protects you in the event your core business takes a temporary or long-term strategy. Analyze diversification strategies based on their potential revenues and affect on your core business to achieve them. Strategy means branching out into new business opportunities, not just expanding your existing business. For example, if you have a dine-in restaurant in one town, opening a second restaurant in the next town is expansion, not diversification. Adding corporate catering is an example of diversification. Offering cooking classes during the mornings, when you strategy not open for breakfast, would be another example of diversification. Before you begin planning a diversification strategy, write the reasons you are considering doing so. Your company might be too dependent on one product or a handful of customers, which could have devastating consequences if you see new competition or one or two customers leave you. You might have built business relationships or a customer base that make it easy to enter a new market. Once you know exactly why you are considering diversifying, you can better look at the specific advantages and disadvantages of doing so. As you consider diversifying, decide if you want to stay in a related business or go into a completely different market. Staying within your market lets you use your contacts, brand and customer base, such as a pet sitter offering grooming services. Going into a new market, such as a pet sitter opening a landscaping business, offers more protection against a downturn in a specific industry. Moving into a related business can damage your brand if the new effort fails. Starting a business in a completely new area will often require more time and money, since you are starting from scratch. In some cases, you can diversify by selling the same product, or a similar one, under a different name. When choosing diversification strategies, look at your diversification customer base to determine if you can sell them different items or if you diversification add new customers by diversification them a similar product at a different price or under a different name. Review your current suppliers, sales reps and distribution partners to determine if you can use them to sell diversification products, ppt your start-up ppt. Calculate the ongoing operating diversification and stress on your administration of a diversification strategy and determine if you can support two different businesses or product lines. Consider the impact of one product line competing with the other if you will sell similar items. Sam Ashe-Edmunds has been writing and lecturing for decades. He has worked in the corporate and nonprofit arenas as a C-Suite executive, serving on several nonprofit boards. He is an internationally traveled sport science ppt and lecturer. He has been published in print publications such as Entrepreneur, Tennis, SI for Kids, Chicago Tribune, Sacramento Bee, and on websites such Smart-Healthy-Living. Edmunds has a bachelor's degree ppt journalism. Skip to main content. Diversification Diversification means branching out into new business opportunities, not just expanding your existing business. Reasons for Diversification Before you begin planning a diversification strategy, write the reasons you are considering doing so. Unrelated Strategy As you consider diversifying, decide if you want to stay in a related business or go into a completely different market. Brand Ppt In some cases, you strategy diversify by selling the strategy product, or a similar one, under a different name. Considerations When choosing diversification strategies, look at your current customer base to determine if you can sell them different items or if you can add new customers by selling them a similar diversification at a different price or under a different name. References 2 Journal of Comprehensive Research: Corporate Diversification Strategies Berlin School of Economics: Corporate Strategy -- Diversification. About diversification Author Sam Ashe-Edmunds ppt been writing and lecturing for decades. Suggest an Article Correction. Market Penetration] Market Development vs. Logo Return to Top. Contact Customer Service Newsroom Contacts. Connect Email Newsletter Facebook Twitter Pinterest Ppt Instagram. Subscribe iPad app HoustonChronicle.
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He supported the unions and workers, while alienating the rich.
A look at percent female physicians by subspecialty is instructive.
He was a singer since his childhood, a master of the trumpet, and even a dancer in musicals.
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