diversification and global market-g2 (1)
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Diversification inGlobal Business
Global BusinessGroup 2
1.YANG (000756133)
2.NINEK (000751561)
3.NGA (0007565284.STELLA (000517071)
5.GAYATHRI (000762432)
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content
Introduction
The reason of diversification
Type of diversification
Role of diversification
Conclusion
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INTRODUCTION
diversification
Diversification is a form of corporate strategy for a
company. It seeks to increase profitability through
greater sales volume obtained from new productsand new markets.
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INTRODUCTION
Global Market
marketing on a
worldwide scale
reconciling or takingcommercial advantage
of global operational
differences, similarities
and opportunities in
order to meet global
objectives.
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INTRODUCTION
Diversification is a common company
strategy in global maket. This strategy
brings billions of pounds every year.
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WHY DIVERSIFICATION?
Putting all your eggs in a single basket :inefficient strategy.
follows overall market instead of limited market.
Explosive growth in international capital flows.
helps to adopt new culture.
positive influence on economy of developing country.
Improve employment opportunity.
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TYPES OF DIVERSIFICATION
Basics to classify
- Synergy
- Relatedness Identify economies of scale in multi-
business firms.
Measure relatedness = measure how to businesses
share technological characteristics, production
characteristics and distribution channel.
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2 main types of diversification
Synergy RelatednessHorizontal
relationships/
Related
- Share both
tangible and
intangible
resources
- Promotion of revenue
from primary activities:
top related