Diversification Strategies Research Paper Example | Topics and Well Written Essays - 500 words

Diversification Strategies - Research Paper Example Google’s diversification strategies prove successful throughout the years. They attribute their success to the fact that diversification in an online market attracts significant lowers costs compared to diversification in the real, physical world. Therefore, most online companies capitalize on this as an advantage. However, this advantage is not merely enough to guarantee success. Sarah Kaplan, a business professor at Wharton University advances that companies like Google find success because they know how to look for what to leverage to their consumers. For example, Google’s current product named Google Docs and Spreadsheets; seeks to compete with Microsoft Office. In this case, Google’s leverage was the provision of a product that would offer more convenience to their clients over an already existing product owned by another company. The fact that Google is online based also makes sales and marketing of their products easier because they are able to reach a wid e market range. The diversification strategy employed by Google includes an eclectic approach where the combination of different strategies happens at the same time, for example, Google combines both concentric and horizontal strategies. This ensures that they stick to products with technological similarities to their current products. Concurrently, they stretch themselves slightly by introducing products which differ technologically and commercially to their current products because they can depend on their loyal customers (Kaplan, 2006). Time Warner AOL is among the companies in which their attempt to diversify proved unsuccessful. The merger of these two corporations caught people’s attention because of the strategy it symbolized a merger of two separate spheres; the old and the new. Throughout its 10 year merger, the conglomerate suffered a variety of setbacks. Firstly, the strategy they