BUSINESS STRATEGY OF DIVERSIFICATION

Aditi A.K. (10030241047) Akhil Kapoor (10030241049) Aniket Rastogi (10030241052) Charushila Dhanshetti (10030241057) Tapti Datta (10030241089)

ABSTRACT
Diversification strategies are used to expand firms' operations by adding markets, products, services, or stages of production to the existing business. The purpose of diversification is to allow the company to enter lines of business that are different from current operations.

Types of Diversification Strategies

Concentric Diversification Horizontal Diversification Conglomerate Diversification

Case Studies under Consideration

For better understanding of the strategies that are followed by various firms and organization at the time of Diversification, there is a necessity for a case based approach for the same. Presently cases are being considered from mainly two types of the aforementioned diversification strategies. These would mainly involve Concentric Diversification and Horizontal Diversification. Below mentioned are the cases along with their types involved providing a brief overview of the case along with the identified objectives with the cases. Conglomerate Diversification Case: Hewlett Packard, Reinventing Itself In 2006, HP planned a million dollar global marketing campaign. Through this campaign the company wanted to send a message to its consumers that they were also one of the prime sellers of personal computers and not only high quality printers. HP's goal was to make the personal computer a more powerful personal tool for the customers. This included ads on the internet, TV, print and billboard. The company felt that this campaign would increase momentum of its PC sales. The case gives an insight into HPs history from its inception with the challenges it faced from its competitors. Objectives To understand the challenges faced by HP To understand the competitors marketing strategies To analyse HPs marketing campaign in comparison to its competitors To analyse HPs focus on Integrated Marketing. Horizontal Diversification Case: Indian Tobacco Company (ITC) ITC has transformed itself from a leading cigarette manufacturer to an umbrella group that offers a diversified product mix to enhance its brand image and reduce dependency on tobacco related products. It has forayed into the hospitality service industry and has become a major player in the hotels segment. Its position in the FMCG business is also on a growth curve; especially its confectionery and biscuits which are slated to achieve the top ranks among its peers. It has made heavy investments to strengthen its IT segment and to compete with the big players like Infosys and Wipro. Objectives To highlight ITCs need to diversify its portfolio of product mix To highlight the strategies adopted by ITC to maintain its position as one of Indias leading companies To discuss the future possibilities of strategic planning by ITC.