The diversification and customization of existing products

For strategy, the addition of tomato ketchup and sauce to the existing "Maggi" brand processed items of Food Specialities Ltd.

In order to measure the chances of success, different tests can be done: Also in countries like India and Indonesia a majority of the people have certain religious beliefs which prevent them from eating meats, so to get around this McDonalds created McVeggie burgers in India and McRice in Indonesia.

The first one relates to the nature of the strategic objective: This strategy tends to increase the firm's dependence on certain market segments.

Therefore, a firm should choose this option only when the current product or current market orientation does not offer further opportunities for growth. It chooses the preferred terminology, all the posts are with the geographic area, and time, location services and even programs like Windows messenger are improved to match the geographic area.

Examples of completed orders. Diversification marketing strategy Adding tooth brushes to strategy paste or tooth powders or mouthwash under the same brand or under different brands aimed at different segments is one way of pdf. December Learn how and when to remove this template message. They didn't want to make one product like an operating system general to all the users across the world because they recognized that cultures will vary throughout the world and they based mostly it on that.

Horizontal diversification The company adds new products or services that are The diversification and customization of existing products technologically or commercially unrelated to current products but that may appeal to current customers.

This is most risky section of the Ansoff Matrixas the business has no experience in the new market and does not know if the product is going to be successful.

The second dimension involves the expected outcomes of diversification: For example, a company that was making notebooks earlier may also enter the pen market with its new product. When is horizontal diversification desirable?

Another interpretation Horizontal integration occurs when a firm enters a new business either related or unrelated at the same stage of production as its current operations. In both cases, Avon is still at the retail stage of the production process.

Product Differentiation Vs. Product Diversification.

Portugal is the sole country with McDonald's restaurants serving soup. The areas of differentiation include quality, price, functions, design, characteristics, advertising and availability.

In addition they wanted a distinctive experience for every user to obtain to their inclination and changing the merchandise dependent on the market is a good way to do that.

The first one relates to the nature of the strategic objective: Generally, the final diversification involves a combination of these options. Management may expect great economic value growth, profitability or first and foremost great coherence with their current activities exploitation of know-how, more efficient use of available resources and capacities.

Offensive reasons may be conquering new positions, taking opportunities that promise greater profitability than expansion opportunities, or using retained cash that exceeds total expansion needs.

Another interpretation[ edit ] Horizontal integration occurs when a firm enters a new business either related or unrelated at the same stage of production as its current operations.

Pdf Regles de conduite. From Wikipedia, the free encyclopedia. The diversification and customization of existing products The diversification and customization of existing products When companies opt to sell their products far away, they must make a decision whether to use a standard product or even to customise it to this country.

Therefore, a pdf should choose this strategy only when the current product or current market orientation does not offer further opportunities for growth.

Indeed, products tend to create or stimulate new markets; new markets promote product innovation. Several times a decade Coca-Cola released a specific kind of drink they've created that's exclusive to certain countries on earth like Coca-Cola C2 which was only available to Japan, Canada and america of America or its most recent technology Coca-Cola Orange which is merely available in the United Kingdom and Gibraltar.

Therefore, the company puts growth in a great uncertainty. It also seems to increase its market share diversification launch a corporate product that diversification the particular company to earn product. Horizontal integration occurs when a firm enters a new business either related or unrelated at the same stage of production as its current operations.

A typology of diversification strategies[ edit ] Trend in product variety for some models in the USA [3] The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm.

Virgin Group moved from music production to travel and mobile phones Walt Disney moved from producing animated movies to theme parks and vacation properties Canon diversified from a camera-making company into producing an entirely new range of office equipment. Because of the high risks explained above, many companies attempting to diversify have led to failure.

Risks Of the four strategies presented in the Ansoff matrix, Diversification has the highest level of risk and requires the most careful investigation. Concentric diversification This means that there is a technological similarity between the industries, which means that the firm is able to leverage its technical know-how to gain some advantage.

These are either brand extensions or product extensions to increase the volume of sales and the number of customers.Product diversification involves addition of new products to existing products either being manufactured or being marketed.

Expansion of the existing product line with related products is one such method adopted by many businesses. Horizontal diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced.

Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity or instability. The diversification and customization of existing products The diversification and customization of existing products When companies opt to sell their products far away, they must make a decision whether to use a standard product or even to customise it to this country.

Diversification (marketing strategy)

The diversification and customization of existing products. Print Reference this. Disclaimer: This work has been submitted by a student.

Diversification (marketing strategy)

This is not an example of the work written by our professional academic writers. You can view samples of our professional work here. The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm.

Generally, the final strategy involves a combination of these options. The negative impact of a company's new product on the sales performance of its existing related products. Market cannibalization refers to a situation where a new product "eats" up the sales and demand of an existing product.

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The diversification and customization of existing products
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