Diversification can also help business to mitigate or reduce the overall risk they face.
Either your company can diversify through the different product or also diversify through entering new market.
By diversifying, the poor performance in one market can be set off by good performance in new market.
Diversification can also help business to mitigate or reduce the overall risk they face.
Either your company can diversify through the different product or also diversify through entering new market.
By diversifying, the poor performance in one market can be set off by good performance in new market.
But this strategy of diversification is not possible for every company. So we have to take care while suggesting this strategy to any organization.
Moxy, which is a new hotel chain, and do you know who’s behind this? Well, you might be surprised to learn, that one of the founders of this hotel chain is Ikea. Of course, we all know Ikea from its furniture, that you need to self-assemble, but they also have a real estate business, they typically rent out office space to companies. But now they’ve decided, we want to use our real estate business and enter the hotel business. And what’s interesting is that they teamed up with Marriott, which is one of the largest hotel operators in the world.
Example of poor diversification – swimming costumes and ice cream – both reliant on sunny weather for sales.
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