Business Strategy- Hybrid And

Diversification

Prepared By- Bishal Singh

BBA 3rd semester
ISMT
 Introduction
 Hybrid and Diversification model are competitive
strategies namely, how company tries to achieve
competitive position in market.
 Aims to achieve competitive advantage.
 Hybrid Strategy

• The hybrid strategy seeks to achieve differentiation and low price simultaneously.
• Contradiction of two strategies.
 Examples-
 Used as an Entry Strategy-

One Plus 6T entered in market with product differentiation- high in quality

and cost leadership.
Price range from 28000 to
50,000( INR)

Example 2

( Differentiate in
quality+ price quality+ price
design+ cost
leadership)
Diversification Strategy.

 The corporate strategy to

increase sales volume from new Market Product
product and new market. Penetration Development

Market
 Considered as risky in Ansoff
Developme Diversification
matrix. nt

 Disruption, Innovation and

Inorganic Growth
 CONTD.

 Usually common in large business houses.

 Rigorous for SMEs in Nepal because of several factors like capital & funding, resources,
customer perception and hence forth.

 The handicraft manufacturers in Nepal are bringing more diversification ; they offer new
designs and new product that will once bring boom in national and international market.
 Diversification Pathways-

 Conglomerate diversification- An unrelated approach. Diversification into

new products , market, technologies that is completely dissimilar to the
existing business line.
 For example- TATA industry has been diversifying itself into many unrelated
areas like iron, telecommunication, consumables and steels.

Concentric diversification is a related approach. Develops new product and

services( closely related to its core business or technology to enter one or
more new markets.

Example- When a notebook manufacturer starts to manufacture pencil.

- Company selling Television adds music system and other electronics
Vertical (Diversification) Integration-
Strategy where company takes complete control over one or more stages in
(supply chain)production or distribution.

 Control over production Backward integration. Eg- automotive

industry
Advantage over suppliers, reduced cost of production and strengthen revenue.

 Control over distribution Forward integration. Eg. Apple has own

chain of stores. Dell sells directly via online.
Major advantage over mediators, direct relation to consumers and high profits.
QNA


Thank you