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Diversification Strategies

Strayer University

Dr. Akpan

Bus 508: Contemporary Business

November 4, 2013

Diversification Strategies

Companies that sell a product must have a strategy for product growth. Implementing growth strategies will improve a company’s business during challenges of consumers changing demands. Consumers behavior can and will dictate a company’s diversification strategies as well as overall success. Well planned diversification strategies are very essential for a successful company in today’s rapidly growing society.

Diversification strategies help companies maintain a steady income during economic recessions. Successful companies find ways to expand using resources they already posses. They evaluate the interest of their target markets then determine what is missing within that specific marketplace. Diversification strategies can be used in 3 different aspects. Company’s can diversify in industry, by brand or going national. However, companies can do other things such as launch new products, emphasize on value, add larger variety to existing options and last but not least expand!

Successful McDonald’s

McDonald’s is the biggest international restaurant today. The company has managed to endure the many challenges changing demands have brought them. As of April 20, 2012 Dell reported a “big quarter with sales rising across all geographic regions due to their adaptation and innovation of adding fresh products and services to address the needs of a diverse consumer market” (www.forbes.com). There are “33,510 locations within 119 countries; nearly 27,075 restaurants are franchised or licensed, 3,619 are licensed to foreign affiliates primarily Japan and 6,433 are operated by the company itself” (www.McDonalds.com). McDonald’s global presence reaches not only “US and Japan but Europe,

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