Diversification Of Wrigley

* Diversification can be a good way that IKEA does to sustain growth after it loses some cache. Product innovation and market development such as IKEA’s expanding goal in U.S. market. It is a risky strategy but with careful selection of the right kind of businesses, considerable improvements in profitability can be experienced.  To try and maintain growth, IKEA is considering diversification outside of the furniture market.

Diversification is when a company introduces a new product/ service to a new market but does not relate it to the existing product. The product is completely new.

The first official night game was scheduled for August 8, 1988, but the game was

Distinguishing one 's firm from the alternatives is a major concern for any business. Strategic analysis provides the starting point in the strategic management process organizations use to evaluate and choose the competitive advantages that distinguish them from other organizations within the market. Dominating businesses should also "choose among alternative grand strategies to guide the firm 's activities, particularly when they are trying to decide about broadening the scope of the firm 's activities beyond its core business (Robinson & Pearce, 2009)."

The business that I chose to research is General Electric. GE is one of the oldest and largest businesses in the United States. They are ranked #26 largest firm in the U.S and the 14th most profitable. GE is a massive, diversified and profitable conglomerate with a lot of very good but unrelated businesses. GE has expanded to incorporate television, airplane engines, medical devices, household appliances and commercial financing. Analyzing GE’s business-level strategy is somewhat difficult being that GE has so many different divisions. Any of these products would serve as a large and viable business on its own but

RQ1: I would advise them to be very open minded and broad when defining their market they are competing in as to not exclude any and all potential competition.

Draw upon market data which is available, to support your conclusions on “Market Structure” with in this industry sector.

activities. The industry is already vertically integrated to some extent. They also deal with similar suppliers

The Nine –Cell industry attractiveness/business strength matrix graph will have the industry attractiveness on the vertical axis while the competitive strength is depicted on the horizontal axis; to the far left corner will be a large bubble representing U.S. grocery and the U.S. snacks, indicating that the U.S. Grocery and the U.S. snacks have both favorable industry attractiveness and competitive strength and thus warrants priority attention. In addition, the U.S. beverage, U.S. cheese and the U.S. convenient meals seem to huddle in the 3 diagonal cells stretching from the lower left to upper, indicating they merit intermediate attention by the Kraft incorporated. However, these segments of the company can be profitable if the company

Presents an analysis of performance and position in different dimensions, for example territory, products, etc.

Moreover, Cooper’s corporate strategy is diversification through acquisitions and mergers. This diversification is in both related and non-related

One of the benefits of both unrelated and related diversification strategies according to Zhang was, “Speed and differentiation… two approaches to be better customer focused; speed in being able to satisfy customers’ needs as quickly as possible and differentiation in being able to offer new and innovative products to meet different needs. (pg. 7)

For both Myer and Premier, the M&A is an appropriate way to satisfy the higher return for their shareholders and enhance their economic strength. In addition, Premier will enhance its rate of innovation through acquiring new technology and intellectual property. Also, Premier can diversify the company’s products into some new market segments and attract new customers and partners. Also, this M&A activity can improve the market competitiveness of Premier against other strong competitors in Australian market and such as Woolworths.

To begin with, heterogeneity of capabilities and resources of firms, which is explained as “enduring and systematic performance differences among relatively close rivals”, provides a foundation of the resource-based view (Song, et al.,2006). The implication of this assumption is that core competence conveys the valuable and unique feature of products to customers. The RBV disagrees with the opinion that the resources are homogeneous; if homogeneity is assumed to be essential to develop a proper strategy, the strategy can be easily copied by competitors, which will ultimately result in the dissipation of above-normal rents. Conversely, the unique and fixed resources on hand will lead to outstanding performance and ultimately turn to be a competitive advantage, under the circumstances that sustainable competitive advantage is achieved in an environment where competition does not exist.

Business firms can use both competitive and collective strategies to manage their interdependencies. The literature distinguishes three major dimensions of competitive strategies: price, promotional, and product competition strategies (Khandwalla, 1981). Competitive strategies manage interdependence successfully if they result in advantageous competitive positions, thus forestalling interdependence and reducing decisionmaking uncertainty (Pennings, 1981). For