It is very important for the management of a business to be constantly vigilant because the business environment is always buffered by change. Consequently, this means that they must be ready to adapt to any changes that may arise by embracing diversification in the organizational structure. In our case, Brunswick family business made the right choice to venture into other markets that had the potential bring profits. By shifting from carriages to billiards, Brunswick’s decision turned his business into the world’s biggest billiard-equipment operation.
For a successful transition into a new market, external factors such as the demand, accessibility of raw materials and level of competition must be considered. Just like the business case, the management of a firm should be able to interpret market changes and develop strategies for adapting to the new environment. It is important for a business to survive any changes in the business arena by turning the challenges into opportunities for potential growth and diversification into different markets.
Delegate your assignment to our experts and they will do the rest.
A company should understand that holding onto one investment can be risky, especially if it performs badly. This means that businesses must be willing to diversify their portfolios so that they can use change as a chance to grow the venture. Some people may consider this as a very risky endeavor because a company would have to rely on a new line of financial resources, technical expertise, unfamiliar markets and an entirely different brand. Despite all these uncertainties, the potential for a rapid and expansive growth may make the risk worthwhile.
Defensive diversification strategies may therefore lead to the collapse of a business because the current product will not provide room for further growth opportunities. In the long run, companies that fail to embrace change end up stagnating and losing a significant share of the market to new players. Just like the history of Brunswick, businesses need to leap into new gaps within the market and conquer new positions that would foster a successful organizational growth.
