The diversification of production

While most definitions of diversification in developing countries do work on the assumption that diversification primarily involves a substitution of one crop or other agricultural product for another, or an increase in the number of enterprises, or activities, carried out by a particular farm, the definition used in developed countries sometimes relates more to the development of activities on the farm that do not involve agricultural production.

ETF managers further screen equity issues on fundamentals and rebalance portfolios according to objective analysis and not just company size. It also seems to increase its market share to launch a new product that helps the particular company to earn profit. Use the Internet to identify potential competitors and find out more about their products and prices.

Analyze the cost of taking The diversification of production product to market so you can prepare an accurate budget for launching the new product.

A product diversification strategy provides opportunities to grow the business by increasing sales to existing customers or opening avenues to entirely new demographics. Project categories include farm infrastructure, marketing, and specialized equipment. Threats[ edit ] Urbanization. Carry out a small-scale market test to evaluate the potential of your strategy.

Analyze whether you have the resources to develop new products or modify existing ones. Therefore, the benefits of diversification hold only if the securities in the portfolio are not perfectly correlated.

Virgin Group moved from music production to travel and mobile phones Walt Disney moved from producing animated movies to theme The diversification of production and vacation properties Canon diversified from a camera-making company into producing an entirely new range of office equipment.

They will then diversify among investments within the assets classes, such as by selecting stocks from various sectors that tend to have low return correlation, or by choosing stocks with different market capitalizations.

Farmers in several countries, including CanadaIndiaKenyaMozambiqueand Sri Lanka have already initiated diversification as a response to climate change. Set a budget for the diversification program to cover development and marketing costs.

Government policy in Kenya to promote crop diversification has included the removal of subsidies for some crops, encouraging land-use zoning and introducing differential land tax systems. The type of crop that can be grown is affected by changes in temperatures and the length of the growing season.

You can take a defensive approach with the objective to protect your business if, for example, demand drops for your products or you face strong competition. This fact, and the proximity of markets, explains why farmers close to urban areas tend to diversify into high-value crops.

Uganda, Burundi, and Ethiopia also made good progress on diversification, with Ethiopia adding horticultural and leather exports. Consider the supply chain implications of your new products. Investing in more securities yields further diversification benefits, albeit at a drastically smaller rate.

Therefore, a firm should choose this option only when the current product or current market orientation does not offer further opportunities for growth.

Horizontal diversification[ edit ] The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity or instability.

Going into an unknown market with an unfamiliar product offering means a lack of experience in the new skills and techniques required.


A typology of diversification strategies[ edit ] Trend in product variety for some models in the USA [3] The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm.

Download Proposal Template Note: People move away from a diet based on staples to one with a greater content of animal products meat, eggs, and dairy and fruits and vegetables.

The specificity of the targeted asset classes and the transparency of the holdings ensure true diversification, with divergent correlations among securities, can be achieved.

Take the time to understand how to effectively plan, organize and execute a new product diversification strategy. This provides the opportunity for farmers to diversify into value addition, particularly in countries where supermarkets play a major role in retailing.

For example, a company that was making notebooks earlier may also enter the pen market with its new product. An alternative form of that Avon has also undertaken is selling its products by mail order e. In those scenarios, the benefit to your company may not offset the risk.Producer Diversification Overview.

The goal of the Producer Diversification program is to encourage agricultural producers to expand or improve their working farm/existing operation through the production of diversified agricultural products. BOYAN JOVANOVIC New York University The Diversification of Production MOST FIRMS TODAY produce more than one this sense their production is diversified, or horizontally integrated.

Producer Diversification

Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting money into few investments. We analyze the impact of land fragmentation on production diversification in rural Albania. Albania represents a particularly interesting case for studying land fragmentation as the fragmentation is a direct outcome of land reforms.

Tagged diversification of production. February 13 th, [email protected] Diversification February 13 th, [email protected] The score is the average for – The numbers after each country name show the change and direction in ranks between and BOYAN JOVANOVIC New YorkUniversity The Diversification of Production MOST FIRMS TODAY produce more than one product.

In this sense their production is diversified, or horizontally integrated.

The diversification of production
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