This strategy is suitable for companies that have reached the highest level in their business area. It can develop in several directions.
Diversification program
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Centered diversification involves developing a new product using internal resources, without adjusting business processes or attracting outside investment. For example:
creation of a new product based on previously implemented technologies;
development of another service based on existing ones;
offering consumers alternative ways to use their product.
Horizontal diversification is guatemala phone data aimed at introducing a new product, the consumer of which will be the existing buyer. For example:
expanding the range of products by adding new items (for example, a yogurt brand starts producing other dairy products);
introduction of another service that will be of interest to the current target audience (a marketing agency, in addition to providing advertising services, is included in the SMM niche).
Conglomerate diversification is aimed at introducing a completely new product to the market that is unrelated to the current range. This strategy is similar to starting a business and is suitable for companies that are ready to significantly change their activities and explore other niches.
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Choosing a Business Development Strategy
This long-term policy is aimed at developing an action plan that will help achieve a specific goal. To choose the method of its development, it is necessary:
conduct an analysis of competitors, target audience and product potential (will it be in demand, what value does it provide to consumers, does it solve their problems);
formulate tasks;
assess available resources.
It is necessary to perform an analysis of the company's capabilities in order to determine a realistic goal. For example, differentiation is a subtype of competitive strategy aimed at creating a unique product.
At the initial stage, it is necessary to develop a new offer for consumers and find out whether the company can continue to operate on the existing production base or whether it will need to be modernized. It is also important to assess whether there are enough labor resources for the tasks set. If you do not create a specific development plan with a detailed description of each step, it will be difficult to achieve the set goal.
The choice of a business development strategy should be a holistic and coherent answer to three key questions:
Where are the world and society heading?
What internal advantages (values, competencies, resources) does the company have on this path?
What do you see your business as in decades?
When answering the third question, it is important to consider the age of the enterprise. The strategy should be developed for a period equal to or exceeding the duration of the company's existence by 2-3 times. Thus, for a company that has been operating on the market for 5 years, the strategic plan should cover no more than 10-15 years.
Choosing a Business Development Strategy