proves the hypothesis of marketing: - Related diversification is a more successful strategy for growth among firms than unrelated diversification. It explains the concept of diversification‚ the rationale of diversification‚ types of diversification‚ diversification strategies‚ and dimensions of diversification. This paper analyses the given hypothesis using various examples and reaches a conclusion. Keywords Related‚ unrelated‚ diversifact‚ diversification‚ diversifame‚ diversifad‚ diversifriction
Premium Milk
Amul’s Diversification Strategy: A Pizza for Rs 20! In early 2001‚ Gujarat Cooperative Milk Marketing Federation (GCMMF)1 planned to leverage its brand equity and distribution network to turn Amul2 into India’s biggest food brand. Verghese Kurien‚ Chairman of GCMMF‚ set a sales target of Rs.10 bn by 2006 as against sales of Rs 2.3 bn in 2001. In 2001‚ GCMMF entered the fast food market in India with the launch of vegetable pizzas under the brand name SnowCap in Ahmedabad‚ Gujarat. GCMMF was also
Free Milk
Unrelated Diversification is a form of diversification when the business adds new or unrelated product lines and penetrates new markets. For example‚ if the shoe producer enters the business of clothing manufacturing. In this case there is no direct connection with the company´s existing business - this The unrelated diversification is based on the concept that any new business or company‚ which can be acquired under favorable financial conditions and has the potential for high revenues‚ is suitable
Premium Management Economics Financial services
TITTLE: ‘‘THE AIRLINE INDUSTRY’’ (VIRGIN ATLANTIC AIRLINES) Contents 1) Introduction to airline industry 2) Drivers of globalisation using yip’s model 2.1 Market globalisation 2.2 Cost globalisation 2.3 Globalisation of government policies 2.4 Globalisation of competition 3) Localisation- arguments against globalisation 4) Pestle Analysis 5) Porter’s 5 forces analysis and their application to Airline industry 5.1 Rivalry amongst Existing Firms 5.2 Threat of substitution 5.3 Threat
Premium British Airways Air New Zealand Virgin Atlantic Airways
DIVERSIFICATION. For companies‚ they all want to have bigger market share and earn more profit. So they will find many ways to penetration into the market like diversification. Diversification strategies are used to expand firms’ operations by adding markets‚ products‚ services‚ or stages of production to the existing business. The purpose of diversification is to allow the company to enter lines of business that are different from current operations.There are basically two broad forms of diversification
Premium Coffee Starbucks
Increase Market Research Southwest Airlines is practicing a conservative growth strategy. The airline focuses on growing internally and expanding within their current routes. It is estimated that in any given year‚ 85% of Southwest’s expansion is internal. The company purchases new planes to add capacity to their system. By next year‚ they will be using 14 to 16 new planes for internal expansion. At times‚ Southwest expanded externally‚ but only when an opportunity was present. The company faces
Premium Southwest Airlines Airline Boeing 737
LVMH’s Diversification Strategy into Luxury Goods The problem After the case and readings the problems of LVMH there are several problems such as the declining demand for luxury goods because it is linked to political events‚ situation and social trends. (After the attacks of 9/11 an impact on luxury goods has dropped and had automatically an impact on LVMH sales) Secondly luxury products are easy to counterfeit‚ some countries such as china‚ turkey‚ and other still have to improve their
Premium LVMH Marketing Gucci
DD Investment Fund Date: 12th December 2012 Subject: Southwest Airlines-Analysis and Valuation The current memo outlines the analysis and valuation of Southwest Airlines along with sectoral trends in the US airline industry‚ its prospects for growth in the near future contact@solvemyassignment.com http://solvemyassignment.com/ Overvie w of the US Airlines Industry and Growth Prospects In the last 20 years‚ capacity in the US airline industry has grown at a CAGR of 1.4 % to ~ 1‚012 billion
Premium Southwest Airlines Airline Los Angeles International Airport
Rural Diversification: The Lake District: Farm Diversification: In the Lake District‚ there are a number of ways in which farm diversification has taken place. For example‚ as the income that farmers receive has decreased‚ they have to creative new ways to make money. On way of doing this is when their sheep are clipped‚ although their fleece is poor quality and colour‚ they can sell it for loft insulation or carpets. Also‚ the Lake District has become a popular tourist destination and as a result
Premium Tourism England Problem solving
funds offer a quick and relatively inexpensive way to diversify‚ the purpose of this article is to address the issue of risk reduction through international diversification. This article also provides support for the hypothesis that international market correlations increase after unexpected exogenous shocks. The implication is that diversification benefits may be reduced after such events. National economies have recently become more closely linked‚ not only because of growing international trade
Premium Pearson product-moment correlation coefficient Correlation and dependence Trade