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» Personal Loan No Credit Check, Online Economics » Management economics » Topics begins with P » Product diversification


Page modified: Tuesday, July 12, 2011 21:08:06

By product diversification one understands the extension the program width in the marketing and management. The extension product ensures for the fact that an additional market range is opened for example if a brewery beside beer also alcohol-free beverages to its program takes up.

Direction

  • horizontal: An enterprise takes up a product of the same Wirtschaftsstufe to its assortment. There is a material connection with the past product program.
  • vertical: Orients itself at the creation of value chain and designates the extension of the production program around products from pre and stored Wirtschaftsstufen (also forward/backwards integration called)
e.g.: A restaurant operates agriculture for the production of favorable meat and vegetable.
e.g.: An automaker produces tires.
  • laterally: Designates the extension of the production program around products, which are completely new for the enterprise and in no technical or economic connection with the past products.
e.g.: An automaker produces airplanes (new products on new markets)
  • concentrically: An automaker, who coordinates particularly well suppliers, does this in the aviation industry (abilities into other creation of value chain export).

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