Diversification Strategies

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Diversification Strategies
BUS 508 Contemporary Business
Seena S. Nelms
Strayer University

Diversification Strategies What is diversification? According to the Merriam-Webster Dictionary online, diversifications means to produce variety or to engage in varied operations. Diversification is a strategy that takes companies into new markets with new products and services to increase their profitability. Some corporations have diversified and succeeded, while other have tried but failed. Today Sara Lee Corporation is a global manufacturer and marketer of brand-name products for consumers globally focused primarily on the meats, bakery, beverage and household products categories. Once known as Consolidated Foods Corporation, Sara Lee started out as a wholesale distributor of sugar, coffee and tea in Baltimore, MD. Then in 1956 the corporation bought a company known as Kitchens of Sara Lee. By 1985, Sara Lee was the corporation’s best-known brand name, so known, that the corporation decided to change its name to Sara Lee Corporations (“Sara Lee,” 2012, Our Timeline). Sara Lee continued to grow through acquisition and increased its market presence abroad. Sara Lee has diversified largely over the years now producing food and beverage, intimates and under wear, and household products; and is successful. According to the New York Times (1989), John H. Bryan Jr., Sara Lee 's chairman and chief executive officer stated, “The main principle of Sara Lee 's diversification strategy is to seek out categories of consumer products where few competitors have used brand marketing”. With brand marketing, Sara Lee is trying to strengthen customer commitment and brand loyalty.
Operating with over twenty-one thousand employees, in forty (40) countries, and selling products in over 180 nations worldwide, I think Sara Lee has created a successful brand market. It has set a global presence that most corporations dream about when they try to



References: AOL. (2012). About AOL, Overview. Retrieved May 1, 2012 from http://corp.aol.com/about-aol/overview Arango, T. (2010, Jan 10). In Retrospect How the AOL-Time Warner Merger Went So Wrong. The New York Times. Retrieved May 1, 2012 from http://www.nytimes.com/2010/01/11/business/media/11merger.html Diversification. 2012. In Merriam-Webster.com. Retrieved April 24, 2012 from http://www.merriam-webster.com/dictionary/diversifiction Junnarkar, S. & Hu, J. (2000, Jan 10). AOL to buy Time Warner in historic merger. Retrieved May 2, 2012 from http://news.cnet.com/2100-1023-235400.html McGill, D. C. (1989, June 19). At Sara Lee, It’s All in the Names. The New York Times. Retrieved April 24, 2012 from http://www.nytimes.com/1989/06/19/business/at-sara-lee-it-s-all-in-the-names Sara Lee. (2012). Our Company, Our History, Our Timeline. Retrieved April 24, 2012 form http://www.saralee.com/OurCompany/OurHistory/OurTimeline.aspx TimeInc. (2012). About Us, History. Retrieved May 1, 2012 from http://www.timeinc.com/aboutus/history.php Thomson Reuters (2012). Sara Lee Corp SLE:NYQ. Financial Times. Retrieved April 25, 2012 from http://markets.ft.com/Research/Markets/Tearsheets/Financials?s=SLE:NYQ

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