Diversification in Business Essay Sample

In this sample essay, we shall be discussing the concept of “diversification in business”. As we know when a business organization or company reaches a certain level of success or development, they aim towards planning and strategies for growth. This is where business diversification comes in. This is because it provides various growth-oriented strategies. Moreover, it is quite an important concept to understand for those interested in business and management.

Therefore, to provide the best possible knowledge to our readers we shall be discussing the various terms and questions related to this. Moreover, we shall be including various topics in the discussion. The topics we shall be discussing in the sample essay are as mentioned below: firstly we shall be looking at the definition of business diversification in business. After this, we shall be discussing the importance of diversification in business. Then we shall be looking at the different type’s diversification strategies in business. Finally, we shall end the discussion with the benefits of business diversification.

What is Diversification in Business?

Diversification in business or business diversification whatever you choose to call it is a type of business strategy. This type of strategy is growth-oriented which is used by organizations or companies for developing a new service or product in a new market.

Importance of Diversification in Business

As we discussed previously diversification provides various growth-orientated strategies aimed towards developing new products and services.  These strategies are quite important for what they do. Adding to that, diversification aids businesses to add value to their new products as well as create a foothold in new markets.

Types of Diversification in Business

In this section of the sample, we shall be looking at different types of diversification seen in a business setting. Adding to this, each of these different strategies is applied based on the situation and need of the business as well as evaluation of the market.

Nevertheless, the different types of diversification are as mentioned below:

• Vertical diversification or integration
• Conglomerate diversification
• Concentric diversification
• Horizontal diversification

Benefits of Diversification in Business

There are different types of benefits provided by the application of diversification in business, as one might have guessed. Without further adieu, the benefits of diversification are as mentioned below:

• Using diversification business can increase their sales and revenue
• Diversification help with growth in market share
• A business can find new revenue streams using diversification strategies
• Businesses can gain higher margin on products
• Diversification helps reduce the impact of changing market
• It also helps maximize the use of existing potential resources

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