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Download Solution PDF"A company in the sewing machine business diversifies into kitchenware and household appliances and sells these items through a chain of retail stores to family consumers”
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Key Points
Concentric diversification is a marketing strategy that involves expanding into related products or services. This strategy is often used by companies that want to grow their business without sacrificing their core competencies. By expanding into related products or services, companies can leverage their existing resources and capabilities. This can help them to reduce costs and increase profits.
In the given scenario, the sewing machine company is using a concentric diversification strategy to expand into kitchenware and household appliances. This is a related product market because they are all products that are used in the home. The company is leveraging its existing expertise in manufacturing and marketing to enter the kitchenware and household appliance market. This will allow the company to reach a wider range of customers and grow its business.
Technology can play a role in concentric diversification, but it is not the primary factor. In the given scenario, the technology that the sewing machine company uses to manufacture and market its products will be the same for both sewing machines and kitchenware and household appliances. However, the marketing strategy will be different for the two product markets.
For example, the company may use different marketing channels to reach customers for the two product markets. It may also use different pricing strategies. The company will need to carefully consider the needs of the customers in each product market in order to develop a successful marketing strategy.
Overall, the given scenario is more related to marketing than technology. The company is using a concentric diversification strategy to expand into related product markets. This strategy will allow the company to leverage its existing resources and capabilities to grow its business.
Last updated on Jun 27, 2025
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