Kalpana Heliya
Par 100 posts (V.I.P)
LOGIC OF DIVERSIFICATION IN INDIAN CONTEXT
Diversification is the process of entering new business markets with new products. Corporate growth strategy is a strategy whereby a business builds its total sales by acquiring or establishing other businesses that are not directly related to the company's present product or market. Such efforts may be undertaken either through acquisitions or through extension of the company's existing capabilities and resources. The diversification process is an essential component in the long range growth and success of most thriving companies, for it reflects the fundamental reality of changing consumer tastes and evolving business opportunity. But the act of diversifying requires significant outlays of time and resources, making it a process that can make or break a company. Diversification is a form of growth marketing strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry in which the business is already in. At the corporate level, it is generally entering a promising business outside of the scope of the existing business unit. Diversification is conducive to higher R&D spending intensity, higher patent counts, and higher technological strengths.[/LEFT][/CENTER]
Diversification is the process of entering new business markets with new products. Corporate growth strategy is a strategy whereby a business builds its total sales by acquiring or establishing other businesses that are not directly related to the company's present product or market. Such efforts may be undertaken either through acquisitions or through extension of the company's existing capabilities and resources. The diversification process is an essential component in the long range growth and success of most thriving companies, for it reflects the fundamental reality of changing consumer tastes and evolving business opportunity. But the act of diversifying requires significant outlays of time and resources, making it a process that can make or break a company. Diversification is a form of growth marketing strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry in which the business is already in. At the corporate level, it is generally entering a promising business outside of the scope of the existing business unit. Diversification is conducive to higher R&D spending intensity, higher patent counts, and higher technological strengths.[/LEFT][/CENTER]