Diversification: A Corporate Strategy to Enter into a New Market
Diversification is a corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that new market. This is most risky section of the Ansoff Matrix, as the business has no experience in the new market and does not know if the product is going to be successful.
Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs.
Restructuring is the corporate management term for the act of partially dismantling and reorganizing a company for the purpose of making it more efficient and therefore more profitable. It generally involves selling off portions of the company and making severe staff reductions.
Restructuring is often done as part of a bankruptcy or of a takeover by another firm, particularly a leveraged buyout by a private equity firm such as KKR. It may also be done by a new CEO hired specifically to make the difficult and controversial decisions required to save or reposition the company
Conglomerate
In business, a conglomerate is a company involved in multiple lines of business that have little relationship to one another. One well-known example is Warren Buffett's Berkshire Hathaway, which owns companies as varied as utilities, newspapers, food processors and furniture stores. Conglomerate diversity, then, refers to diversification by entering entirely new and unrelated lines of business. If you owned, say, a hardware store and then bought a car wash, you'd be engaged in conglomerate diversification. Typically, companies achieve conglomerate diversity through acquisitions -- buying existing businesses -- rather than starting new operations from scratch.
Concentric
Concentric diversification involves adding new products or services that are related to your current offerings -- either because they appeal to the same
Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs.
Restructuring is the corporate management term for the act of partially dismantling and reorganizing a company for the purpose of making it more efficient and therefore more profitable. It generally involves selling off portions of the company and making severe staff reductions.
Restructuring is often done as part of a bankruptcy or of a takeover by another firm, particularly a leveraged buyout by a private equity firm such as KKR. It may also be done by a new CEO hired specifically to make the difficult and controversial decisions required to save or reposition the company
Conglomerate
In business, a conglomerate is a company involved in multiple lines of business that have little relationship to one another. One well-known example is Warren Buffett's Berkshire Hathaway, which owns companies as varied as utilities, newspapers, food processors and furniture stores. Conglomerate diversity, then, refers to diversification by entering entirely new and unrelated lines of business. If you owned, say, a hardware store and then bought a car wash, you'd be engaged in conglomerate diversification. Typically, companies achieve conglomerate diversity through acquisitions -- buying existing businesses -- rather than starting new operations from scratch.
Concentric
Concentric diversification involves adding new products or services that are related to your current offerings -- either because they appeal to the same