Diversification strategy
- Created by: Chloebrooksxxx
- Created on: 18-02-17 12:49
View mindmap
- Diversification
- A diversification strategy achieves growth by developing new products for completely new markets.
- Risky due to not being aware of what the new market is life
- potentially create a product that is not wanted at high demand
- new skills will be needed by employees to create this new product
- could be expensive to train employees
- they don't know whether the product will fail
- loose a lot of money
- a business may be doing this to try and grow their business or rebuild it
- therefore, if the product failed it could potentially cause a business to fail
- a business may be doing this to try and grow their business or rebuild it
- Cost of launch of product is huge and will leave cash flow bad
- therefore if it fails, could be detrimental
- loose a lot of money
- But you can build your product portfolio
- having a wide range or products
- Could be good for business to grow
- allowing them to get into new markets and be able to grow their business and expands
- increase in revenue
- allowing them to get into new markets and be able to grow their business and expands
Comments
No comments have yet been made