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Unformatted text preview: 11-17-2009 Diversification1)Diversification Spreading Risk, Expanding your business into a new realm of a related area of business or an unrelated area. a)Relatedness based on 2 thingsi)Are they similar in a technological senseii) Are they similar in terms of market(1) Tobacco companies go into food investments because they are consumer goods and the market is the same2)3 Growth Strategiesa)Do it Yourselfi)Horizontalii) Verticaliii) Geographical Expansion (integration)b)Buy It (Acquisition)c)Partner (Short or long term 3)Distinctive versus Core Competenciesa)From a resource based view of the firm it is relatively clear that you do not want to go into a new business arena where you do not have some established capabilities and experience. b)Dont use Core Competency to explain, use Distincitve Competencyc)For something to be a Core Competency it has to satisfy these 3 thingsi)Expandabilityii) Transferabilityiii) Inimitability(1) Example of a true core competency Toyota kan ban system, many...
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This note was uploaded on 09/08/2010 for the course BUS 189 at San Jose State University .