Thursday, 16 February 2012

diversification


Diversification inherently constitutes networking, reaching out in terms of services and products, or/and having variations.

 A number of strategies may be employed. One such strategy is for a company to diversify its range of products. A firm may even become its own supply of its raw materials or services. Diversification may also include a firm moving into related new markets with new product. In the context of Kenya, small businesses like street trade where one sells firm produce like fruits harvested from one’s shamba (farm). Another example would be hotel, where one’s firm supplies foodstuffs.

A firm that produces a number of largely unrelated goods and services is said to be diversified. A diversified company might be offering services such as research, and at the same time selling computer accessories and printing. Diversification gives a company more financial security than it would have if it produced only one kind of product. Because a diversified company operates in various industries, it can usually offset declines in one industry with advances in another. 

Diversification is therefore an opportunity for growing small businesses in Kenya, for it ensures stability and continuity. 
diversification enhances the streamline activity of a person ability into the full potential regardless of whom the person i dealing with in situations of business transactions and incase of a shaky environment.

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