When is a "diversification growth strategy" appropriate?

Question Posted / guest

2 Answers
9474 Views
I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

When is a "diversification growth strategy" appropriate? ..

Answer / mangesh

diversification means selling new products or services in
new markets.It can be done in four ways:
1. Horizontal diversification:this occurs when Co. acquires
or develops new products that may appeal to existing
customer groups even though the new products may be
technologically unrelated to existing product lines.
2. Vertical diversification:The Co. moves into business of
suppliers or that of its customers. This is normally done to
reduce threat from the suppliers and customers.The customers
means the channel members.
3. Concentric diversification:results in new
products/services that have technological and/or mktg
synergies with existing product lines.
4.Conglomerate diversification:occurs when there is neither
technological or mktg synergies with existing product lines
and involves reaching new customer groups. This is done by
large companies to balance cyclical portfolio with
non-cyclical one.

Is This Answer Correct ?

13 Yes

4 No

When is a "diversification growth strategy" appropriate? ..

Answer / ashwini

According to Ansoff matrix....diversifaction strategy is
only appropriate when you have a new product and new market.

Is This Answer Correct ?

6 Yes

6 No

Post New Answer

More Marketing Sales Interview Questions

how to sell a product ?if interviewer as a customer?

5 Answers Zensar,

Pl fwd any type of faqs in marketing in sales

0 Answers

wht is roi

7 Answers Ascent,

what is prising stratigy and what are the different types of pricing.

1 Answers Coca Cola,

Tell me about the most difficult sale you have made. What did you learn from it?

0 Answers TCS,

what is general marketing

3 Answers Pepsi,

How the market is measured using consumer equilibrium?

0 Answers

1. how can sale the product to the coustumer?

0 Answers Bajaj,

How does the sale help consumers to increase their awareness?

0 Answers

How to move on from a rejection?

0 Answers

We are looking for a truly inspiring Marketing and PR Executive, someone who can create a culture of open communication, trust and respect. What strategies would you implement to achieve this?

0 Answers Quest,

What is basic marketing?

0 Answers

For more Marketing Sales Interview Questions Click Here