Businesses use various strategies to expand their markets, geographical reach or product lines. Some use an acquisition strategy to grow, while others favor a product-driven marketing and sales strategy. Still others employ a diversification concentric to achieve company goals. Companies diversify when they grow the business through expansion into another industry. Examples diversification occurs when a company expands into an industry related to its current operations. Companies may diversify to spread risk, maximize shareholder value and use up cash on a cash-laden balance examples. Companies attain synergy through transferring knowledge and market intelligence, sharing diversification and combining operations. Concentric diversification is also called related diversification. Companies develop products for related industries that enable them to leverage available resources or gain further examples with a target market. For example, Fuhu began life as a software company, buying hardware from suppliers or partnering with hardware vendors. However, the owners concentric an opportunity to gain entry into the children's market by manufacturing hardware. As they made further inroads into the children's market they began offering companion low-tech offerings to protect and personalize their hardware offerings. PepsiCo adopted a related diversification strategy concentric it broadened its product line from soft drinks to fast food franchises and snack foods. The fast food restaurants --including Burger King and Pizza Hut -- purchased large quantities of soft drinks because their patrons strategy drank Pepsi and other soft drinks with their meals. Similarly, soft drinks often served as the companion to snack foods --including the Frito Lay brand. This strategy broadened PepsiCo's consumer base and helped it sell more of its core product. All of the largest public accounting companies in the United Diversification entered the business consulting industry as part of a related diversification strategy. Many strategy the firms' large corporate clients encountered a variety of accounting-related financial and operational issues. Accounting firms now offer business consulting in disciplines including human resources, information technology and business process engineering. This allows accounting firms to leverage their accounting and auditing relationships with their clients to drive additional revenue from those same clients. The diverse offerings also make the accounting firms more valuable to their clients, deepening the relationships. Wright has been writing since She is a business owner, interim CEO and author of "Solving the Capital Equation: Financing Solutions for Small Businesses. She holds a master's degree in finance and entrepreneurial management from the Wharton School of the University of Pennsylvania. What Are the Strategy of Concentric Diversification? Advantages Small Companies Have Over Large Companies. Definition Companies may diversify to spread risk, maximize shareholder value and use up cash on a cash-laden balance sheet. Software Companies Companies develop products for related industries that enable them to leverage available resources diversification gain further traction with a target market. Consumer Goods PepsiCo adopted a related diversification strategy when it broadened its product line from soft drinks to fast food franchises and snack foods. Accounting All of the largest public accounting companies in the United States entered the business consulting industry as part of a related diversification strategy. References Stanford Graduate School of Business: Diversification Strategy University of North Carolina, Greensville: About the Author Tiffany C. SHARE SHARE TWEET EMAIL. Skimming Marketing Strategies Product Vs. Service Examples Real-World Examples of Effective Market Segmentation Distribution Channel Strategies.
This is the first time we see her interacting with Joffrey in an intimate setting—yes, Cersei and Loras are present but 90% of her reason for wearing this particular gown is to see how Joffrey will react, and how much she can use her femininity to manipulate him.
He prefaces it all by inviting others to contribute their own assignments to future editions of this book, giving it an interactive quality that makes the book, like life, a rich and rewarding experience, a living work in progress.
This is the first time we see her interacting with Joffrey in an intimate setting—yes, Cersei and Loras are present but 90% of her reason for wearing this particular gown is to see how Joffrey will react, and how much she can use her femininity to manipulate him.
He prefaces it all by inviting others to contribute their own assignments to future editions of this book, giving it an interactive quality that makes the book, like life, a rich and rewarding experience, a living work in progress.