Diversification Strategies Essay

1289 words - 6 pages

Diversification Strategies

When companies begin they develop a business plan that details what they intend to specialize in. For some, once they have reached a goal in one market they make decisions to venture out into other markets. In the world of business, that venturing out is called diversifying the company. According to Merriam-Webster’s online dictionary, to diversify is “to increase the variety of the products of; or to engage in varied operations.” (Merriam-Webster, 2012) In a business, when you produce a variety of goods or invest in different markets it is a strategy that provides a back-up in the event that one good or investment goes south. Diversification ...view middle of the document...

The next state the company began to serve areas in was Florida. The new owner, Ralph Roberts, decided to change the name of the company in 1969. The name was chosen “in an effort to build a more technological identity, he took portions of the words "communication" and "broadcast," creating Comcast Corporation and reincorporating the company in Pennsylvania.” (Comcast Corporation, 1999) From that point the company continued to expand and develop relationships with other companies. In 1983, Comcast Corporation even expanded into the United Kingdom. Today, according to Comcast’s website (2012); Comcast Corporation is one of the world’s leading media, entertainment and communications companies. Comcast is principally involved in the operation of cable systems through Comcast cable and in the development, production and distribution of entertainment, news, sports and other content for global audiences through NBCUniversal. Comcast cable is one of the nation’s largest video, high- speed Internet and phone providers to residential and business customers. Comcast is the majority owner and manager of NBCUniversal, which owns and operates entertainment and news cable networks, the NBC and Telemundo broadcast networks, local television station groups, television production operations, a major motion picture company and theme parks. (Comcast, 2012)

Eastman Kodak Company was developed in 1880 by George Eastman. The idea for the company came from Eastman’s desire to make the camera and the materials associated with it easier to transport. He began by manufacturing dry glass plates that he would sell to photographers. For a while the business was shaky. The plates were not always made the same and therefore had to be replaced, a service that Eastman provided for free. Eventually the business began to grow and Eastman continued to work on the company’s product. It was his desire to find a lighter and more flexible substitute for the glass plate. “In 1884 he introduced a new film system using gelatin-coated paper packed in a roll holder that could be used in almost every plate camera available at that time.” (Eastman Kodak Company, 2001) Following that, the company introduced its first portable camera in 1888. The new portable camera has a price point of $25. You could shoot the entire roll of film and afterwards the owner would send both the film and the camera to Rochester for processing. The cost of processing was $10 and it included the developing of the film as well as having the company send back the camera loaded with a new roll of film. “This breakthrough is considered to be the birth of snapshot photography.” (Eastman Kodak Company, 2001) During this time Eastman developed and trademarked the name of the camera, Kodak. He came up with the name by first using his favorite letter “K” and playing with words that both began and ended with it. (Eastman Kodak Company, 2001)
The company continued to prosper and be innovators in the world of...

Other Papers Like Diversification Strategies

Study Guide Essay

1091 words - 5 pages the business’s mission and goals. o Corporate strategies determine the business in which a firm operates. o Types of corporate strategies • A growth strategy encourages an organization to expand its current markets or products, through concentration, vertical or horizontal integration, or diversification. • In a stability strategy, organizations continue to do the same things they have done in the past, causing the

Business Management Essay

1447 words - 6 pages Three generic strategies, including advantages and disadvantages (cost, differentiation and focus - major emphasis) Overall cost leadership is based on creating a low-cost position relative to a firm’s peers, managing relationships throughout the entire value chain to lower costs. (McDonalds, Walmart) Pitfall: Too much focus on one or a few value chain activities. Increase in the cost of the inputs on which the advantage is based. The

Bs 2013 Unit Description

862 words - 4 pages , directional policy matrices, SPACE, Profit Impact of Market Strategy (PIMS). 3 Strategy evaluation and selection Market entry strategies: organic growth, growth by merger or acquisition, strategic alliances, licensing, franchising Substantive growth strategies: horizontal and vertical integration, related and unrelated diversification Limited growth strategies: do nothing, market penetration, market development, product development

Portfoilio

2266 words - 10 pages -consuming), is represented by GlaxoSmithKline. The three industries can be affected by completely different factors in nature. 1.2. PORTFOLIO CONSTRUCTION This portfolio was constructed by stocks, listed only on the London Stock Exchange (LSE), with no interaction with emerging markets. Although international diversification is not present, the unsystematic risk is lower due to the investment in already developed market (LSE), allowing enough

Merger, Acquistion, And International Strategies

797 words - 4 pages Business-Level and Corporate-Level Strategies Christie Jones Christopher Zapalski Business Admin. Capstone 5-15-15 I am going to be discussing about corporate and business level strategies for C Company. The paper will also talk about valuing the organization, long-term success, differences in fast and slow cycle. C company was an organization in which they gather, valid, electronic data, automat collections, and retrieval system

Dr Pepper Snapple Group Energy Drink Case Study

1334 words - 6 pages are supported by significant expenditures in media and other promotional vehicles. The first alternative, choosing not to enter the energy drink market, would minimize the company’s risk of investing resources into an unprofitable venture. Diversification is often a high-risk strategy because both the product and market served is new to the firm. This strategy would be recommended if it is determined that success requirements for the energy

Can Small Developing Countries Survive In A Globalised Environment

3615 words - 15 pages example) might find it easier to adjust to the opening trade barriers than an economy like St. Lucia which is heavily dependent on the banana industry. Page 8       Competing in a globalised world Caribbean Countries must therefore develop strategies that allow for quick response to global dynamics. One aspect of this strategy is the diversification of economies. The case of the impact of the declining banana industry is evidence of the need for

Fins5516 Chapter1Testbank

1734 words - 7 pages ) subsidies c) tax holidays d) low-interest, government-subsidized loans Ans: a Section: Criticisms of the Multinational Corporation Level: Easy 12. International ________ can reduce the volatility of an investment portfolio because national financial markets tend to move independently of each other. a) arbitrage b) centralization of the MNC’s cash c) diversification d) investment Ans: c Section: The Importance of Total Risk

Coke Or Pepsi

1008 words - 5 pages Overview There is little doubt that the most spirited and intense competition in the beverage world is between Coca-Cola and Pepsi Co., the two main players in the carbonated soft drink (CSD) production market. The competition between the two giants has benefited not only the consumers but also the companies. By checking and challenging each other in the market, the competition has lead to improvement and diversification of products and has

Diversification Strategy

1423 words - 6 pages Assignment 2: Diversification Strategy The purpose of this paper is to compare and contrast two companies; One successful and one unsuccessful. The two companies chosen for this purpose is General Motors (unsuccessful) and Toyota Motor Corporation (successful). The content of this paper will analyze, compare and contrast the outcomes, and recommend actions that General Motors could have made to make their diversification venture more

Strategic Analysis Of Unilever

5273 words - 22 pages Complexity. SWOT / TOWS Matrix 4. International brand strength. 5. Market share of 41% 6. Committed to business ethics, safety, health, environment and community. OPPORTUNITIES 1. Developing countries. 2. Rapid increase in world’s population. 3. Unrelated diversification. 4. Rural area. 5. Hygiene Consciousness S-O Strategies 1. Discover new markets (O1,O2,O4,S4,S3) 2. New quality products (O3,O5,S3,S6) 3. Unrelated diversification

Related Essays

Marketing Essay

1226 words - 5 pages lure clients away from competitors or introduce existing products in foreign markets or introduce new brand names in a market. * Product Development -Company strategies based on product development often try to sell other products to (regular) clients. This can be accessories, add-ons, or completely new products. Often existing communication channels are leveraged. * Diversification -Company strategies based on diversification are the most

Banyan Tree Essay

333 words - 2 pages penetrate global markets, not just for the purpose of expansion, but also for survival and risk diversification reasons. However, their visionary CEO also recognizes the need to maintain a delicate balance so as not to dilute the brand and create and maintain the unique BT experience deliverable only through competent human resources and infrastructure. Its core customers belong in the luxury market who can afford to pay for the unique

Marketing And Management Essay

392 words - 2 pages opportunities. The steps in strategic planning are as follows: define the mission, set objectives, design business portfolio and planning strategies. * What is a mission statement? This is a statement of the organization’s purpose; in other words it is what the organization wants to accomplish in the larger market environment. More specifically, a market-oriented mission statement is what defines the business organization in regards to meeting basic

Air Asia Strategi Management Essay

3247 words - 13 pages ought to address questions and issues related to the overall direction and scope of the business and where it should be going, as well as to look at the organisation’s competitiveness and where in the future it can continue to be stronger (MacMillan and Tampoe, 2000). Section (b) described the tactical level strategies that can further allow the grand strategies discussed in section (a) to be acted upon. Also the merits and limitations in each