PREREQUISITES AND EFFECT OF THE COMPANY’S ACTIVITIESDIVERSIFICATION

1. PREREQUISITES
AND EFFECT OF
THE COMPANY’S
ACTIVITIES
DIVERSIFICATION

2. THE COMPANY’S ACTIVITIES
DIVERSIFICATION
 Diversification − one of the
strategic alternatives of the
company which provide the
growth and development of the
enterprise by creating new
business lines in which the
company is able to form a
stable competitive advantage,
minimizing thus the overall
risks of business activity

3. DIRECTIONS OF THE COMPANY’S
ACTIVITIES DIVERSIFICATION
diversification of production
diversification of sources and supply conditions
diversification of markets - development of new product markets, and
expansion by moving into new areas (both related and not related to the
core activities of the company
diversification of distribution channels, methods of stimulating demand and
wholesalers
diversification of financial risks - expanding the range of financial tools of
the company, creditors and debtors and others

4. PREREQUISITES OF THE COMPANY’S
ACTIVITIES DIVERSIFICATION
Diversification
inability to obtain
additional income
in the traditional
sphere of operation
stagnation of the
enterprise market:
the trend of
demand reduction,
strong pressure of
competitors
need to invest
accumulated
capital in order to
maintain and
increase its value
need to reduce risk
high barriers of
entering to
international
markets

5. REASONS WHY BUSINESSES ARE TRYING
TO DIVERSIFY (ANSOFF)
Company suffers
from reduction of
return on
investment in
current business
(inability to
achieve goals
within existing
business portfolio)
The amount of
profit remaining in
the entity is
insufficient for the
expanding of
current activities
The possibility of obtaining more profit
than the simple expansion of production
due to the fact that:
research and
development
department can
offer promising
new by-products
synergistic
benefits derived
from just of the
development of
the business are
insignificant
compared to
diversification

6. EFFECT OF THE COMPANY’S ACTIVITIES
DIVERSIFICATION
Effect
Minimization of dependence on one type of
customers (target market)
Provides income, stability and sustainability of the
development in long term period
Increase of economic resistance to the
company's risks
Increase the level of economic effectiveness and efficiency
of the enterprise and providing process of internal growth

7. STRATEGY OF REINFORCING AND
EXPANDING NEW BUSINESSES

8. NETWORK CAMERA SYSTEMS
SUPPORT DIVERSIFYING MARKET
NEEDS

9. COMMERCIAL PRINTING
SUPPORT DIVERSE PRINTING
MATERIALS

10. Nanoimprint
Accelerate the Set-Up of Next-Generation
Semiconductor Production Equipment Business
 Progress in developing semiconductor production equipment
employing nanoimprint technology

11. MEDICAL BUSINESS
COMMERCIALIZATION OF GENETIC
TESTING SYSTEM
 Genetic Testing System

12. Conclusion
 Successful implementation of the diversification strategy will give the
company the opportunity to expand its market presence, due to
penetrating into other areas, to ensure revenue and profit growth,
minimize the risks of economic activities, achieve greater mobility in
responding to market challenges, thus strengthening enterprise
competitiveness not only in domestic but also in foreign markets.