Canon Diversification Strategy
BUSINESS STRATEGIC DEVELOPMENT
CANON DIVERSIFICATION STRATEGY
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By:
NURSYAH FAHMANSYAH RIZKI
(0832200304)
Magister Manajemen Sistem Informasi
Universitas Bina Nusantara
2009
DIVERSIFICATION
Definition
Diversification is a form of growth marketing strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry in which the business is already in. At the corporate level, it is generally and it’s also very interesting entering a promising business outside of the scope of the existing business unit. Diversification is part of the four main marketing strategies defined by the Product/Market Ansoff matrix:
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Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually requires a company to acquire new skills, new techniques and new facilities. Therefore, diversification is meant to be the riskiest of the four strategies to pursue for a firm.
The Different Types of Diversification Strategies
The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm. Generally, the final strategy involves a combination of these options. This combination is determined in function of available opportunities and consistency with the objectives and the resources of the company.
There are three types of diversification:
1. Concentric diversification This means that there is a technological similarity
CANON DIVERSIFICATION STRATEGY
[pic]
By:
NURSYAH FAHMANSYAH RIZKI
(0832200304)
Magister Manajemen Sistem Informasi
Universitas Bina Nusantara
2009
DIVERSIFICATION
Definition
Diversification is a form of growth marketing strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry in which the business is already in. At the corporate level, it is generally and it’s also very interesting entering a promising business outside of the scope of the existing business unit. Diversification is part of the four main marketing strategies defined by the Product/Market Ansoff matrix:
[pic]
Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually requires a company to acquire new skills, new techniques and new facilities. Therefore, diversification is meant to be the riskiest of the four strategies to pursue for a firm.
The Different Types of Diversification Strategies
The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm. Generally, the final strategy involves a combination of these options. This combination is determined in function of available opportunities and consistency with the objectives and the resources of the company.
There are three types of diversification:
1. Concentric diversification This means that there is a technological similarity