Question

A hairbrush company has settled on a diversification strategy after it performed an analysis with the strategic opportunity matrix tool. In order to implement this strategy, the company must take what steps?

Answer 1

Answer:The company develop new products and create a new market.

Explanation: Diversification is a strategy used in developing a business in order to meet its corporate objectives. It involves moving from the normal and trying new things.

A company may decide to diversify its activities by venturing into markets or products that are related to its business. For example, an agricultural company producing food stuff can diversify by opening a restaurant for sale of fast food.

Answer 2

Answer:(1) It must develop a superior new product and capture new markets.

(2) It should try to adopt a Competitive pricing technique.

Explanation: DIVERSIFICATION STRATEGY is a set of well though out steps put in place by Business Organisations in order for them to penetrate new markets. In order for a Business organization to penetrate or move into new markets it must adopt certain strategies which will enhance it effective diversification program.

It must make superior new product that are able to meet the needs of the consumer.

It must adopt a Competitive pricing technique which will enable it make it product pricing appealing to the customers.