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Diversificaiton is strictly a strategy that takes the organisation away from both its existing markets and its existing products. In this sence, it adically increases the organisation’s scope. In fact, much diversification is not as extreme as implied by the closed boxes of the Ansoff growth matrix.

Ansoff growth matrix

Bow D tends to imply unrelated or conglomerate diversifacation, but a good deal of diversification in practice involves building on relationships with existing products. Frequently too, market penetration and product development entail some diversifying adjustment of products or markets. Diversification is a matter of degree. read more about diversification here

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oktober 5th, 2008 at 8:27 am