Diversification Strategies

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BUS 508: Contemporary Business

Dr. Micky Mouse

Assignment2: Diversification Strategies

Submitted by

Minnie Mouse

Research two corporations that have had different outcomes (one successful and one unsuccessful) with their diversification strategies. Compare and contrast each corporation’s diversification strategy and evaluate the reasons for each one’s success or failure in the venture.
Compare and contrast the two businesses—core business, their size, financials, global presence, use of e-business (marketing, sales, etc.). A great example of companies that utilized completely opposite paths in the business world is Wal-Mart and Kmart. Recently, Kmart is on an endless downhill spiral while Wal-Mart has risen to the top of the retail industry and is their financial strength is strong. Wal-Mart is the largest business enterprise in the world as well as the nation’s biggest employer and the number one retailer in the U.S. There are over 5000 Wal-Mart stores and they report sales over three-hundred billion dollars. Two million people are employed by Wal-Mart in twenty-eight countries in the world. Fortune magazine’s 2010 Most Admired Companies Survey ranks Wal-Mart among the top ten retailers. Kmart is now the #3 discount retailer behind Wal-Mart and Target. There are 1,300 Kmart stores located in 49 US States as well as Puerto Rico, Guam, and the US Virgin Islands.
Compare and contrast their outcomes (one successful, one unsuccessful). Kmart and Wal-Mart both began in 1962 and they both sold the same products. The difference in their outcome is in their individual diversification strategies. Kmart paid little attention to its core business as well as its competition. Instead, Kmart purchased the Sports Authority, Office Max, Borders, Payless Drugs,…...

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