The Advantage and Disadvantages of a Corporation Diversifying Internationally

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The advantage and disadvantages of a corporation diversifying internationally


Table of Conten

1.0 Introduction
2.0 Body of Content
3.0 Conclusion
4.0 Reference

1. Introduction
Diversification, as a risk management means, mainly concerns the alteration and experimentation of various kinds of investments that are included in a specified portfolio. The reason why it is the usual practice is because a certain portfolio is mostly inclusive of different investments that can bring about higher profits as a relatively lower risk of stand-alone investments within the similar or
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Increased Market Share

When it comes to market share, most people are inclined to refer it to the proportion of the overall consumption market taken up by the company on the strength of its products and services. It is the truth that if a company has a larger share of the immediate market, it will be bound to possess more foothold in this market which will in turn results in more sales on the grounds that products of this kind can be observed by the consumers more frequently than those of the counterparts. This, however, may make it rather difficult to those smaller corporations to become competitive in comparison with the business in possession of a larger market share. In this way, concentric diversification serves as a useful method for the company to raise its own market share since it can gain more product presence in the even wider marketplace.
However, pitted against the advantages of concentric diversification are its disadvantages in that more risks and commitments but less flexibility may be brought about at the same time. For this, horizontal diversification here serves as a proper method of dealing with products and services that in some sense may not have any relationship with some products yet still able to stimulate the interests of potential buyers. The strategy of thin kind may seem effective when the customers are loyal to present goods or services and when

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