If Amazon opted to pursue a strategy of related diversification: 1) what industr
ID: 1105665 • Letter: I
Question
If Amazon opted to pursue a strategy of related diversification: 1) what industries or product categories could [it] diversify into that would allow [it] to capitalize on using Amazon's present brand name and corporate image to foster an advantage in these newly entered businesses or product categories; 2) Name at least two or three such industries or product categories, and indicate what specific benefits might be captured by transferring Amazon's brand name to each of these businesses/product categories; 3) Would you prefer to pursue a strategy of related or unrelated diversification? 4) Why ?
Explanation / Answer
Related diversification involves entering into new market which are similar to existing. As Apple is in industry of IT machines provding gadgets it would be related diversification if it tries to enter into bitcoin mining. This is the industry where Apple can use its brand very successfully.
Other industry could be Apple automatic selff driven automobiles. It can also try luck in robotics.
Apple is renowned for the IT that it uses. The advance tecchnology, its operating system, capacbilities of its artificial intelligence and continuous improvement are the factors that make the brands. All these aspects are required for the in dustrie smention above hence Apple can us eits name in primoting its product under these industries.
Related diversificiation is much safer and easier to implement as an existing firm already hold some brand image and enetring into an unrelated diversificiation will make it difficult to accept the brand as there area lready some meanings attached to the brand specific to the industry. Beside, exsiting facilitym staff, expertise and other resource could be used fro newer industries under related diversification. Therefore, related idversificaton is preferrable than unrelated.