Strategies for Diversification.

Ansoff, H. Igor

Strategies for Diversification. / H. Igor Ansoff - Harvard Business Review 1957 - Harvard Business Review; Sep/Oct57, Vol. 35 Issue 5, p113-124, 12p, 5 Graphs

The article discusses a method for evaluating profit potential in alternative product-market strategies. The formula for improved return on investment from diversification can be used to calculate conditions where ΔR would be greater than zero, or when it would be profitable to diversify. Four growth strategies are product development, diversification, market development, and market penetration. Long-range sales forecasts can define economic, political and international, industrial, and manufacturing-cost trends, as well as estimating a company's competitive advantage. Topics include product line, product mission, product-market strategy, the objectives of vertical, lateral, and horizontal diversification, and examples of diversification in the aircraft industry.

0017-8012

Diversification in industry Mathematical models of economics Strategic planning Multiproduct firms Sales forecasting Marketing strategy

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