Explore BrainMass
Share

Diversification in Different Strategies

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

I need help in completing a paper, the focus of the paper is diversification. Include two examples of two diversification strategies, as well as when related diversification would be a good strategy to pursue.

© BrainMass Inc. brainmass.com October 25, 2018, 8:58 am ad1c9bdddf
https://brainmass.com/business/marketing-strategy/diversification-in-different-strategies-559209

Solution Preview

The idea of diversification is to reduce risk. Risk is reduced in business when a firm is able to broaden its sales base in order to gain growth initiatives. The underlying assumption is that the broadening effect of spreading the sales opportunities, thereby spreading the opportunity to gain additional sales volume allows any firm to have room for error in the event that forecasting events do not occur. Through this process, the firm provides itself a cushion, or an insurance policy of sorts, which allows for it to continue to grow sales, market share, in an ever expanding process for growing the business organically, that is, not costing itself business which already exists, but rather adopting a ...

Solution Summary

Analyzing and reviewing diversification strategies and their effects

$2.19
See Also This Related BrainMass Solution

Diversification Strategies

Please help me with these two short essay questions:

1) Explain the benefits of related and unrelated diversification strategies.
2) Explain the reasons why multinational diversification strategies are so attractive.

View Full Posting Details