Find A Real Example Of Successful Diversification Strategy. Indicate Possible Dangers And Opportunities For A Business.

1. Find a real example of successful diversification strategy. Indicate possible dangers and opportunities for a business.

There has been a lot said about the Walt Disney Company in the past and, whatever customer's opinion of Mickey Mouse and friends, there's no doubting its success as a brand. A pioneer of animated movies, over the years Disney has made the move into merchandising, theme parks and vacation properties and the difficult jump into Europe and Asia. Disney is the epitome of a diversified industry.

Opportunities: At the beginning all the possibilities about different customers, it means that the main clients that Disney is aiming for everybody. It is amazing how many different ways teen age children and their families can enjoy themselves. Disney has developed strong positions in many of them and the recent diversification into virtual reality demonstrates that even at the age of 85 it is never too late to learn about a new industry. And definitely it allows Walt Disney to introduce in international markets, due to the market development in untapped countries.

Dangers: Last year, Disney took a surprising step into social networking, buying children's virtual word Club Penguin for a figure that could rise to a potential 700 millions. This price might seem steep for a company with an annual revenue of 40 millions. So in this way it could become involved in disputes with banks.

The opening of a theme park can be paralyzed by social and ethnic group which do not agree because different reasons.

Nevertheless, one of the main dangers is the piracy. Walt Disney can become lose revenues generate by movie. Also the competitor; in one hand we have high competition in Media Market, but in the other about the theme parks: Paramount Park, Universal Studios and Six Flag Theme Park. Because of this there is a high demanding market in terms of innovation.

2. Find a real example of unsuccessful concentration strategy. Discuss possible future opportunities and threats for a business adopting this strategy.

Kodak is said to have failed because of the overemphasis on the selection and concentration strategy. However, the real cause of Kodak’s failure is that the printer market is too small for such a big company as Kodak to do business. A company cannot achieve good results in a market that is too small in comparison to its company size.

Opportunities: New technology helps the firm to better meet their customer’s needs and to understand their requirements with new and improved products and services. Technology also builds competitive barriers against rivals.

Other one is that emerging markets are fast growing regions of the world that enable kodak to quickly expand. And therefore new markets allow the company to expand their business

...