What is a solid diversification?

, also known as commercial or corporate diversification, is the diversification of the company with a deliberate activity of companies that have decided to create the presence in more than one market or industry, using a number of strategies to create a place in these markets and generating profits from every effort. The purpose of this type of diversification is to ensure that the company is able to resist changes in economics and consumers tastes by compensating any decline in one market associated with profits in others. There are several ways to continue with solid diversification, including the establishment or acquisition of subsidiaries and marketing a wider range of goods and services in several markets below the same brand.

One approach to fixed diversification involves creating the presence on the market by making products that actually use waste or by -products, crushed in the production of goods and services that are sold on other markets. One example would be an oil company that has a strong presence in the production of oil products and gasoline intended for individuals and commercial use. Instead of disposing of the waste, which is left after the preparation of these products, the company may decide to set up a textile plant that produces a fiber created by the rest or waste from the refinement of ingredients in oil products. With this approach, the company is not only able to maintain the presence on the original market, but also to use something that basically had no value to create new products sold in another market to create further revenues.

In some cases, the company diversification requires a strategy that includes the ownership of a number of business entities that do not have apparent connections other than the fact that they are all owned by a parent. Using this approach, the company can be in a position to make Mohapojtar food products that are sold in one market, electrical appliances that will satisfy the demand in another market, and soThey produce a clothing line that attracts attention on the next market. All products can be launched under the common brand, or could be sold under the names unique for each market, with or without a parent company.

Fixed diversification is used by a number of business entities, often without the general public, which is aware of the connection between different brands sold in different markets. For the company itself, diversification is often attractive because it helps to ensure that there are more flow flows associated with multiple markets. If sales suffer from one market based on factors, such as consumers' tastes, economics changes, or even advances in technology that cause the product line to be outdated, the company remains viable due to the continuing success in the Otjeji markets. This effectively purchases the time to adjust and possibly improve the conditions in the market sector that is no longer profitable or even replace this market with another thatshows more promising.