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Business Diversifications of Boeing and Ford Motors

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Submitted By ADEJAYAN
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STRAYER UNIVERSITY | Business diversifications of Boeing and Ford Motors | Victor Adejayan | | PROFESSOR WALTER WILLIAM DINGMAN | BUS 508 |

A qualitative analysis of the diversification efforts of Boeing and Ford Motors. |

Diversification:- Diversification is the process of entering new business markets with new products. Such efforts may be undertaken either through acquisitions or through extension of the company's existing capabilities and resources. The diversification process is an essential component in the long range growth and success of most thriving companies, for it reflects the fundamental reality of changing consumer tastes and evolving business opportunity. But the act of diversifying requires significant outlays of time and resources, making it a process that can make or break a company. Small business owners, then, should carefully study diversification options—and their own fundamental strengths—before proceeding (Gale Encyclopedia of Small Business). Barron’s Marketing Dictionary defines Diversification as; Corporate growth strategy whereby a business builds its total sales by acquiring or establishing other businesses that are not directly related to the company's present product or market (Barron's Business Dictionary). Barron also identified the three major diversification strategies as the following; Concentric diversification, where the new business produces products that are technically similar to the company's current product but that appeal to a new consumer group; Horizontal diversification, where the new business produces products that are totally unrelated to the company's current product but that appeal to the same consumer group; Conglomerate diversification, where the new business produces products that are totally unrelated to the company's current product and that appeal to an entirely new...

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