Diversification Strategy and Performance of Processing Firms: A Case Study of Diamond Foods in California, USA
DOI:
https://doi.org/10.53819/81018102t5197Abstract
Diversification strategy refers to the expansion of a firm's product offerings or entry into new markets beyond its existing core business. It is aimed at reducing risks, capitalizing on growth opportunities, and enhancing the overall performance of the firm. The impact of diversification on performance varies depending on various factors such as the industry, market dynamics, strategic alignment, resource allocation, and customer perception. Successful diversification strategies can lead to increased revenue streams, market share expansion, enhanced brand equity, and improved operational efficiency. However, the effectiveness of diversification ultimately depends on careful planning, strategic decision-making, and continuous monitoring of performance metrics. The study used the descriptive research design. The target population was 30 heads of departments in the Diamond Foods California, USA. The study did sampling of 25 respondents that were selected from the target population of 30 heads of departments in the Diamond Foods California, USA. Questionnaires were used to collect the data. It was concluded that through an analysis of Diamond Foods' diversification activities, it was evident that the company had pursued a strategic approach aimed at expanding its product portfolio and entering new markets beyond its core nut processing business. The study highlighted the importance of maintaining a strong brand identity and customer loyalty when diversifying, as it can be a challenge to ensure consistent quality and customer satisfaction across diverse product offerings. The study recommended that it is crucial for firms to conduct a thorough analysis of the market dynamics and competitive landscape before embarking on diversification. These firms should prioritize strategic alignment and resource allocation when diversifying. Processing firms should prioritize maintaining a strong brand identity and consistent quality across diverse product offerings. Firms should actively seek customer feedback and adapt their diversification strategy based on consumer preferences and market demands.
Keywords: diversification strategy, performance, Processing Firms, California
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