Sony Music and Sony Interactive Entertainment. 3. Vertical diversification strategy Vertical diversification strategies occur when a Business Email List company is dedicated to manufacturing products or developing services that it previously acquired from third parties. This can develop in two ways: Backward integration, which is executed when the Business Email List company acquires or associates with another company to cover the previous phases in the production chain. Here, the company becomes its own supplier. Forward integration, which occurs when the company manages the phases of the production process closest to the customer, such as the Business Email List marketing, logistics or distribution stages. For example, Apple has diversified vertically to produce the iPhone.
In addition to developing its own software, iOS, it is also responsible for designing, producing and carrying out marketing and commercialization Business Email List actions for smartphones. 4. Concentric Diversification Strategy Finally, a company performs concentric diversification when it integrates new products or services Business Email List into an existing line . As part of its concentric diversification strategy, Coca Cola has launched different versions of the classic Business Email List drink onto the market, for example, Coca Cola Light, Coca Cola Zero or Coca Cola Café. The 5 roles of Marketing in diversification strategies The objective of diversification strategies Business Email List is to encourage business growth , but how is it achieved?
It all boils down to adding more product lines to the core business to: open markets; attract new customer segments. These two actions fall directly Business Email List on the marketing department. And it is that without the market research process carried out by this team, it would be impossible to develop products that meet the needs of consumers. With this in Business Email List mind, below, we will explain the role that marketing professionals have within business diversification strategies. 1. Identification of business opportunities The marketing Business Email List department is one of the departments that best knows the end customer of companies.