The company has since diversified into tablets, watches, smart-audio and even electric vehicles. Apple’s diversification strategy at the turn of the millennium not only saved the company from imminent bankruptcy, but helped it grow into one of the largest companies on the planet. Amazon Like Apple, Amazon is one of the largest and best-known companies in the world, with revenue of $386 billion in 2020. Amazon’s initial business was as an online book retailer, which enjoyed great success after its launch in 1995. How to plan Books were easy to source and distribute, but company founder Jeff Bezos always planned to diversify .

Diversification strategy

In 1998 the site began selling video games and other Canada Telegram Number Data multimedia products, and before long, the company was selling consumer electronics, software, housewares, toys, and more. Amazon’s long-term goal has always been to diversify from an e-commerce site to a full-fledged technology company. In the mid-1990s, Amazon launched AWS (Amazon Web Services), which provides on-demand cloud computing platforms and APIs. From web services and e-commerce to consumer electronics, Amazon has further diversified with the launch of the Kindle e-reader and subsequently the Amazon Echo smart speaker system up to Alexa.Is it better to specialize in your core business or diversify? Would diversification create or decrease value.

How to plan Payment terms

In a remarkably Egypt Telegram Number similar trajectory to that previously  followed by Apple, it also entered the digital music industry with Amazon Music.  Diversification is a high-risk business development strategy. When entering new markets with new products, preparation and planning are essential. The “ Three Proofs of the Value of Diversification ” are a great place to start, and I highly recommend you ask yourself the following questions when thinking about your diversification strategy. Is there an optimal degree of diversification? What types of diversification are most likely to create value? Now that you have a clear understanding of what I mean by diversification, I’ll explain why it is essential for me to diversify but above all to diversify from my colleagues .