Example of diversification strategy in india

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Corporate Level Strategy: What It Is Plus 9 Examples

Views Total views. Actions Shares. No notes for slide. Diversification strategies corporate level strategies - Strategic management - Manu Melwin Joy 1. Diversification strategies Corporate Level Strategies 2.

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  3. Will India’s Current Diversification Trend Pay Off for Companies?;
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  5. Amul's Diversification Strategy!
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Investing in non-core businesses: Has diversification worked for India Inc? - The Economic Times

Diversification strategies 4. While vertical integration involves a firm moving into a new part of a value chain that it is already is within, diversification requires moving into new value chains. You just clipped your first slide! Clipping is a handy way to collect important slides you want to go back to later. Although Honda is best known for its cars and trucks, the company started out in the motorcycle business.

Through competing in this business, Honda developed a unique ability to build small and reliable engines.

What is Diversification Strategy? (Definition and Examples)

When executives decided to diversify into the automobile industry, Honda was successful in part because it leveraged this ability within its new business. Honda also applied its engine-building skills in the all-terrain vehicle, lawn mower, and boat motor industries. Earn credit, add your own example!

Sometimes the benefits of related diversification that executives hope to enjoy are never achieved. For example, both soft drinks and cigarettes are products that consumers do not need. Companies must convince consumers to buy these products through marketing activities such as branding and advertising. Thus, on the surface, the acquisition of 7Up by Philip Morris seemed to offer the potential for Philip Morris to take its existing marketing skills and apply them within a new industry.

Unfortunately, the possible benefits to 7Up never materialized.

Examples of Business Diversification

Why would a soft-drink company buy a movie studio? Lighter firm Zippo is currently trying to avoid this scenario. This brand has fueled eighty years of success for the firm. But the future of the lighter business is bleak. This downward trend is likely to continue as smoking becomes less and less attractive in many countries. Amul had to expand the consumption base of milk-based products in India.

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  • It planned to make its products butter and cheese a part of the regular diet in most households. Amul launched its new products with the intention of increasing the offtake of its basic milk products, including cheese.

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    This in turn was expected to increase the earnings of the farmers. The pizzas were expected to increase the sale of its cheese. The entry into the confectioneries market was another avenue for increasing milk consumption.

    This flurry of launches helped Amul broaden its appeal across all segments. Price was an advantage that Amul enjoyed over its competitors. Analysts felt that Amul could price its products low because of the economies of scale it enjoyed.