Diversification in growth strategy, market penetration strategyHorizontal Diversification Horizontal diversification allow a firm to start exploring other zones in terms of product manufacturing. A small company will need to plan carefully when using a diversification growth strategy. The firm is also developing and introducing a new product. The three approaches to diversification or integration are: Although managerial skills and experience can be transferred, individual managers may not be able to make the transfer effectively. This strategy is riskier than market penetration because you have to develop traction in the new market. Consider a Vertical Diversification Strategy Think about all the steps that are involved in getting a product to market. By opening its own retail outlets, a firm is often better able to control and train the personnel selling and servicing its equipment. If you are involved in defining or implementing a diversification strategy you will be aware of the discomfort or risk that occurs when working outside your existing knowledge base. Synergy may be achieved by combining firms with complementary marketing, financial, operating, or management efforts. This kind of extreme diversification worked because of liteforex india vision and extraordinary risk tolerance of its founder, Richard Branson.
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Ansoff Matrix - Diversification Strategy
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