Strategies for Diversification. / H. Igor Ansoff

By:

Ansoff, H. Igor

Material type: Text

TextLanguage: English Publication details: Harvard Business Review 1957ISSN:

0017-8012

Subject(s):

Online resources:

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Summary: 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.

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Item type	Current library	Call number	URL	Status	Date due	Barcode
Academic Article	TBS Barcelona		Link to resource	Available

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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.

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