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Ansoff pointed out that a diversification strategy stands apart from the other three strategies. Whereas, the first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, the diversification usually requires a company to acquire new skills and knowledge in product development as well as new insights into market ...
Non-connected diversification – creating a new area. The process is slow, because it is needed to create a whole infrastructure, but the profit would be higher. Connected diversification is based on an economical mechanism for expanding the available potential. For business development it means low risks and good margin.
The simplest example of diversification is provided by the proverb "Don't put all your eggs in one basket". Dropping the basket will break all the eggs. Placing each egg in a different basket is more diversified. There is more risk of losing one egg, but less risk of losing all of them. On the other hand, having a lot of baskets may increase costs.
But the list also shows how diversified the region’s business has become. The top industry represented on the list is banking and insurance, accounting for 28% of the total. Real estate and ...
Diversification: ETFs provide instant diversification across a wide range of emerging market stocks, reducing the risk associated with investing in a single company or country.
The UAE is certainly an attractive opportunity for investors looking to boost growth and enhance diversification in their portfolios. However, it’s also important to consider the risks.
Economies of scope make product diversification efficient, as part of the Ansoff Matrix, if they are based on the common and recurrent use of proprietary know-how or on an indivisible physical asset. [7] For example, as the number of products promoted is increased, more people can be reached per unit of money spent.
When doing business with multiple companies, such is the case here, it may become necessary to standardize paperwork – such as RFQs, and purchase orders. As price fixing is illegal in countries such as the United States, traceable paper trail management becomes a legal obligation for companies seeking supply chain diversification.