Diversification in a Business Strategy

Topic 

Diversification in a Business Strategy

Instructions 

Write a discussion paper on diversification in a Business Strategy

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An industry or product that complements the current products of the firm is a major attractive factor for diversifying into it. Complementary products are likely to shore up the sales of the firm’s current products especially if the current product enjoys a large market share (Thompson 2020, p.171). Besides, the complementary product can lead to better uptake of the current product even where it is low at the moment. Customers loyal to a brand prefer purchasing complementary products from the same brand, especially if there is an element of compatibility between the products. The new product therefore would help raise the market share of the current product.

Word Count: 600