Assalamualaikum.Hye readers.Just take a few minutes to read additional knowledge about corporate strategy.
What does crafting a diversification strategy entail?
The task of crafting a diversified company's overall corporate strategy falls squarely in the lap of top-level executives and involves four distinct facets:
- Picking new industries to enter and deciding on the means of entry.
- Pursuing opportunities to leverage cross-business value chain relationships and strategic fit into competitive advantage.
- Establishing investment priorities and steering corporate resources into the most attractive business units.
- Initiating actions to boost the combined performance of the corporation's collection of businesses.
I just give simple example.As we know,Air Asia is the biggest company and offers the lowest fares.
Air Asia believes that certain segments of this market have been under-served historically and that the Group's low fares stimulate travel within these market segments.Its slogan "Now Everyone Can Fly!" encapsulated Air Asia's goal of expanding the market for air travel in Southeast Asia.
To penetrate its target market, Air Asia placed a big emphasis on marketing and brand development."The brand is positioned to project an image of a safe,reliable low-cost airline that places a high emphasis on customer service while providing an enjoyable flying experience".Air Asia also built its image through co-branding and sponsorship relationships.A sponsorship deal with the AT&T Williams Formula 1 race car team resulted in Air Asia painting one of its A320s in the livery of the a Williams race car.Its sponsorship of Machester United has resulted in it painting its planes with the portraits of Machester United players.It also sponsors referees in English Premier League.A cooperative advertising deal with Time magazine resulted in an Air Asia plane being painted with the Time logo.
# Sources from www.inkling.com