Swot Analysis of Coca Cola

1668 Words7 Pages
Introduction: Many small businesses grow by taking opportunities to diversify, although there are risks because of limited resources on all fronts. Businesses should weigh up the risks and costs of opting for growth carefully against the benefits. business diversification isn’t just selling more types of products. Developing a business plan that includes well-researched, strategic efforts will not only expand the reach of the business, but also help increase the value of existing services. Definition: Diversification refers to a strategic direction that takes companies into other productsand/or markets by means of either internal or external development. Diversification can take several forms, including: • new, related products…show more content…
 Increasing market power, an organisation can afford to cross-subsidize one business from the surpluses earned by another in a way that competitors may not be able to.  Stretching corporate parenting capabilities into markets and products.2 Responding to market decline  Spreading risk 4. Advantages and disadvantages of diversification in relation to the case studyAdvantages  Control of inputs, leading to continuity and improved quality. For instance 1984and 1985 NewsCorp acquired Twentieth Century Fox and six television stationsof the Metromedia Broadcasting Group in the US. These acquisition provided thecompany with a wider platform for consolidation of its related activities throughaccess to studios for making films and television Programmes.  Control markets by guaranteeing sales and distribution. This can arise through acombination of linkages in the value chain. For example where production anddistribution channels are combined, or where a company uses its well-established brand names or corporate identity to gain benefits in new markets  Take advantage of existing expertise, knowledge and resources in the companywhen expanding into new activities. This may result in transfer of skills, such asresearch and

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