What is diversification with example?
Conglomerate diversification refers to the development of new products that are unrelated to your original lines. For example, your t-shirt company has now decided to start stocking apple products.
What is an example of diversified?
A company may decide to diversify its activities by expanding into markets or products that are related to its current business. For example, an auto company may diversify by adding a new car model or by expanding into a related market like trucks.
What does diversification mean in economics?
Economic diversification can be defined as the shift toward a more varied structure of domestic production and trade with a view to increasing productivity, creating jobs and providing the base for sustained poverty-reducing growth.
What countries diversify economy?
Japan is home to the world’s most diversified economies. Based on the economic complexity index, Japan, Switzerland, and Germany have the most diverse economies in the world….Countries With the Most Diverse Economies.
Rank | Country | Economy Complexity Score |
---|---|---|
1 | Japan | 2.229 |
2 | Switzerland | 2.054 |
3 | Germany | 1.956 |
4 | South Korea | 1.799 |
What is the best example of diversification?
Apple. One of the most famous companies in the world, Apple Inc. is perhaps the greatest example of a “related diversification” model. Related diversification means there are notable commonalities between the existing products and services, and the new ones being developed.
How has Apple used diversification?
First there was the Mac line of computers, then Apple added the iPod, then the iPhone, and little over a year ago, the iPad. Over the past 10 years, Apple has gone from being a computer company to being a true consumer brand.
How does Coca Cola use diversification?
Coca Cola is a classic example of how to do diversification, with a standing commitment to exploring new ideas and growing product diversity that, even in a world when people are so virulently anti-sugar, the Coca Cola brand is still largely adored.
Which is the best example of related diversification?
Is Nigeria economy diversified?
The Minister of Science, Technology and Innovation, Dr. Ogbonnaya Onu says that Nigeria’s economy has been diversified due to policies of the Federal Government.
What is the importance of economic diversification?
A diversified economy creates a sustainable cycle of economic activity where businesses continually feed off of one another and grow larger as the economy grows. As more and more businesses open their doors, it leads to the growth of supporting industries.
Is Apple a diversified company?
What companies use a diversification strategy?
Another company that has benefitted from diversification is Apple. They used horizontal diversification to expand their product range from computers to iPods. This created an interlinked range of products that beautifully complimented each other and created an exclusivity to owning Apple.
What are some examples related diversification?
– Related by resources: The firm can utilize the same resources across the new area – Related by products: Similar types of products to which the company already produces – Related by customers: The diversification expands to cover the same customer base.
What are the types of diversification strategies?
Low Levels of Diversification. Low levels diversification has two sub-types; single business and dominant business.
What is the difference between diversification and expansion?
Expansion through Diversification. Definition: The Expansion through Diversification is followed when an organization aims at changing the business definition, i.e. either developing a new product or expanding into a new market, either individually or jointly.
What are some examples of conglomerate diversification?
Concentric Diversification. Concentric diversification is when a business introduces a new product into the new market.