Diversification and Global Market-G2 (1)

7/29/2019 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:

Diversification and Global Market-G2 (1)

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