Business Diversification and Its Importance
Business Diversification is nowadays one of the most important strategy. With the advancement in technology, it is now next to impossible to keep a monopolistic win over a single product or service. Anyone can now jump in the same business and even do it better. So, diversification becomes very important for a business. It simply means to jump in a business, product, service where you currently don’t exist.
This diversification can be seen all over the place, Google from “Web Search” business to video “YouTube”. This is even done by small mom and pop stores by bringing in supply which they don’t usually carry. Uber from Taxi aggregators to food delivery, Amazon from e-commerce to web services.
Diversification can take place in two simple ways either you start from scratch or you acquire some other running business. Both have ways have pros and cons one gives you flexibility as you build your own and others would bring expertise. It is not necessary that one has to diversify in a related market one can go wild. Reliance is currently doing business in oil and mobile network. 3M (Minnesota Mining and Manufacturing Company) from mining to car accessories. So, one can go wild.
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