Diversification Strategy (With Real World Examples) | From A Business Professor
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- เผยแพร่เมื่อ 22 มิ.ย. 2024
- 3M Company, formerly known as Minnesota Mining and Manufacturing, created some of the most iconic name brand products in the American economy. Some of these brands include Scotch tape, Post-It Notes, Scotchgard and others. The company also has a significant presence in many industries, including health care, security and protection services, and communications.
Similarly, as one the largest corporate entities in the world, Samsung Group’s highly diversified business has an even wider range of industries including financial services, information technology services, machinery, shipbuilding, and chemicals.
As you can see, both 3M and Samsung expanded their business through diversification. So what exactly is the diversification strategy? Why do firms implement it? And what are the major types of diversification strategies? In this video, I will answer these questions for you.
In the corporate world, diversification is crucial. especially now that a lot of the most well-known brands have increased the range of goods they offer. While many fail, many others go on to succeed and even turn around some of the smaller companies they bought. Amazing video!
Diversification is a crucial factor in modern business, as many well-known brands have expanded their product portfolios. While some attempts may fail, many have succeeded and even improved the performance of smaller acquired businesses.
Diversification plays such an important role in business. Especially these days where many of the most recognizable brands have expanded their variety of products. Many fail, but plenty still have become successful, even improved some of the smaller businesses acquired. Great video!
Diversification is so important for businesses today. I am glad that we major companies highlighting their emphasis on the need for it. I hope other people follow their lead not only to expand business but to set an example. I better understand the need for market disruption even if it can be scary. Great video!
I believe that diversification is a essential part in the business world. I enjoyed how it explained that numerous business markets and brands are using different diversification strategies in order to grow their business. I enjoyed how both "unrelated" and "related" diversification were discussed.
I love this video so much. Diversification is such an interesting idea for me and I am glad to see that we went over it in this class. Having watched the video, I learned a lot about of how companies chose to diversify themselves.
in any business diversification is very important. Now that I have watched the video I know understand the importance of diversification.
Diversification Strategy is an excellent way for a company not to put all their eggs in one basket essentially. Loved to be able to understand this strategy and now makes sense why company's do this so often.
Diversification is a very important aspect when developing a successful business. However, I think that businesses should be careful with exactly how much they diversify because it can turn against them. I strongly believe in related diversification. i think that if done properly, it can make businesses very succesful and they can stand out above their competition if they become a very reputable brand. Great video!
I really enjoyed this video! I think it is very interesting how unrelated diversification can be very bad. It is strange to me that Starbucks and Harley Davidson would try to sell something so different from their normal products. I think it can be easy for big companies like these to think since they are so big they can sell anything and that they will succeed, which is not the case. It is a great reminder that no matter how big of a company you are, you are not "invincible."
This video was very easy to understand, but also very detailed and informative as well. Loved it!
The video did an amazing job at the information for diversification. I thought it was really interesting to learn more about diversification.
Simple explanation. Thanks!
Diversification is key in business today. This video is very informative and provides different strategies to show it.
This video has broadened my knowledge regarding related diversification, unrelated diversification, and competitive defenses. Very helpful video!
Seeing how companies use diversification to their advantage is a very interesting concept because yes it has its advantages but sometimes a company may not need diversification, like Starbucks and Harley Davidson. I really enjoyed how informative this video was.
This video was incredibly entertaining! I find it fascinating how diversification that is unrelated can be detrimental. I find it odd that Harley Davidson and Starbucks would attempt to market something so dissimilar from their typical offerings. These large corporations may find it easy to believe that because of their size, they can sell anything and will be successful, but this is untrue. It serves as a fantastic reminder that, despite your company's size, you are not "invincible."
Diversification is necessary to any company of almost any size above raw entry level. As a company grows, moving eggs around to different baskets becomes critical, so that if one market fails, or is going through a rough patch, the parent company will not go under. This allows for the companies to maintain and continue on, which allows the name to become more well known and boosts profits long run as well.
Thanks for the amazing and helpful video!!
After watching this lecture and taking the quiz i found this topic very interesting. I t is what makes a business successful and shows what should or needs to be done exactly.
Before watching this video I had a little prior knowledge to diversification. However, after watching this video I learned about the reason for market disruption. The factors include mitigating risk, competitive defense, and increasing profits. When I start to work under a business that has market share this will be vital to understand.
Thank you for the examples and simple explanation of the diversification concept.
I knew a little about diversification previous to watching this video. But after watching this movie, I discovered the cause of the market disturbance. Risk reduction, competitive defense, and profit maximization are among the contributing variables. This will be important for me to comprehend when I start working for a company with a market share.
Learning about the different types of diversification, and how companies use it to their advantage was very interesting to learn about in this video! one thing that stood out to me was how sometimes diversification can fail like harley davidson and starbucks trying to sell branded water and furniture.
I enjoyed this video and learning about diversification. I liked the example of diversifying through the products that are offered (Like a coffee shop also selling foods) and increasing the profits through that!
Diversification Strategy is a great way for companies to make profit but understanding how to target one or multiple markets is a marketing skill that needs to be mastered.
I enjoyed watching and learning from this video. Diversification and really important to understand in today’s business world
Diversification is crucial nowadays, with some many new industries coming up and developing faster than ever, it is important for companies to adjust to said new industry. Enjoyed learning why it is important and how some well-known companies have done so.
We always hear the word diversification but understanding it is another thing. It is interesting to see whenever unrelated diversification is successful, since they usually are not, such as when Amazon bought Whole Foods. It was informative to list real world examples so the application of the diversification strategy can be seen.
Learning new terms, such as diversification, helps me understand companies a little bit better. Some companies need diversification, and some do not.
I really enjoyed learning about this topic more in depth, I figured I knew a lot about it but hearing how other company's enforce this it was neat to learn more.
Diversifications of products is something that I have had some experience with over the past few years. It has helped the business thrive because some markets have become obsolete due to manufactures in the industry offer what we the retailers do.
This video showed me deeper past the surface level of diversification. The Honda example showed a great example on how they used their knowledge of small yet powerful and efficient motors to expand from producing motorcycles to car, lawn mower, and even boat engines.
Diversification is a factor that is very evident nowadays with businesses trying to expand their company. I feel like diversification is something that big companies should always try to implement since they can not go wrong with trying it out. Yes, we have been told about Starbucks trying to sell furniture but even though it did not work out, the slight chance of Starbucks furniture being a success is enough to motivate the owners to implement that diversification.
This video can be very beneficial for students who are aspiring to manage or own a business one day. Businesses need to know how to expand their market share and possibly expand their business into new markets.
I really thought this video helped me gain knowledge on this subject.
One of the first examples of diversification I think of is Yamahaw. They make musical instruments and motorcycles, two things that have nothing to do with each other but both are great revenue sources for the company showing how effective their diversification efforts have been.
Diversification is such and interesting and important topic and this video did a really great job of capturing that.
Such a great video over the topic of diversification. I was a little confused before I watched this but this video did a great job of explaining diversification to me.
I really enjoyed learning about diversification strategies in this video because it really intrigues me to learn about. I find it interesting to learn about ways to better companies because it can help me one day in the line of work I am going into. This was my favorite topic to learn more about this semester.
This video is very informational of the diversification strategy. Great work.
Great video on diversification! Everyone should watch and have a better understanding of it.
Before this lecture video, I was unfamiliar with the term diversification strategy, but after the video I had realized that I have witnessed certain diversification strategies in the real-world. For example, when discussing unrelated diversification and the example of Harley Davidson and Starbucks I realized I had seen other organizations practice it too.
amazing effort
Diversification is important to not only businesses but a lot of things. You want to be able to reach as many people as possible so your business can expand
Diversification strategy has a very important role when having a business. Like launching new things within a business .
Being able to implement the diversification strategy can allow your company to be able to grow. Many things within this are really awesome even with all the risk that can happen within this. But when they introduce more products they can hopefully gain more sales within this product. Being diversified can be good with the on going changes in the world.
it is wonderful presentation and important point
This video was quite interesting, and I learned a lot about diversity. I thought it was a great illustration of how boosting one's income may be accomplished by expanding one's product line.
Diversification strategies can be a way of expanding a business that can provide varying products or services on the market. This can increase market share and add new customers. The more products a business is invested in the more risk involved, but the more markets the business has to compete and make profit.
A good diversification strategy can kick start a struggling business. It can also extend the success of an already profitable company.
thank u so much!
This video is worth watching than my university lectures
I have always wondered what completely happened to Blockbuster, hearing that they basically didn't diversify and didn't get up to date with the way they do their movies, the result of that put them out of business.
If you put all of your money into a single bond and the issuer declared bankruptcy, you'd lose some if not all your funds, too. Diversification helps mitigate the risk to you about such scenarios by choosing different investments and types of investments.
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Diversification strategy is very important when it comes to international business.