For example, a bakery making bread starts producing biscuits. February 5, 2021. Related diversification is when a company operates several businesses that are linked together in some way or has several related product lines. Product diversification: In the first fiscal quarter of 2015, Apple's revenue from iPhone was $51.182 billion, up 57% from $32.498 billion in the same period last year. Diversification is a strategy for growth through branching out into a new market segment, allowing your business to expand its presence and occupy a totally new space. A related diversification is one in which the two involved businesses have meaningful commonalties, which provide the potential to generate economies . Jan. 06, 2013 8:00 AM ET Apple Inc. (AAPL) . The secret sauce behind Apple's success - Real Business Chapter 6 Corporate-Level Strategy Flashcards | Quizlet Largely, the creation of the three products lines compounds the sources of the company's income. Thus, overall risk of the company is reduced. Apple and Nike have their own retail outlets and also use other independent retailers, both the brick-and-mortar type and online, to sell their products. Apple: Strategic Diversification Makes A Bright Future An unrelated diversification strategy may work well in certain specific situations. What is Unrelated Diversification? A Conglomerate Approach to ... Apple Ansoff Matrix is a marketing planning model that helps the multinational technology company to determine its product and market strategy. Search based merchandise is a related diversification for Google, core for Amazon, and arguably unrelated to Facebook. Horizontal Diversification - Horizontal diversification happens when a business adds a product or service offering outside of its current line that has an affinity that would likely appeal to its customer base. For example, Hear Music is the brand name of Starbucks' retail music concept. In a concentric diversification strategy, the entity introduces new products with an aim to fully utilize the potential of the prevailing technologies and marketing system. Apple Needs Product Diversification (NASDAQ:AAPL) | Seeking Alpha What diversification strategy does Apple use?
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