Corporate Strategy to Enter Into a New Market or Industry Which the Business Is Not Currently in

Diversification is a corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that new market. Many companies feel the need to diversify to increase market share, generate more revenue and reducing risk and dependence on one product and market. (Ansoff 1957) Charlies is relatively expanding and they seem to be successful in their ventures and currently in its peak stages. They initially started as a producers of not from concentrate juice products and increasing their product ranges from juices to flavored sports water, smoothie and sparkling water. Even though they have an edge in the market share and seemingly good brand image. But in order for Charlies to survive in the ever transforming global markets they need to diversify their business by venturing into new overseas markets and develop even more diverse range of products to survive as a company. Charlies should consider opting for horizontal diversification where a company introduces new products but isn’t directly in line to its current products but it is likely to appeal to its existing customers. Charlies focuses on satisfying its health conscious customers who want natural and healthy drinks. Charlies should consider entering the healthy food and snack industry which is exponentially growing and is estimated to be a trillion dollar market by 2017. Charlies should introduce products like protein bars, cereals, frozen yoghurt and nutritional powders. These products are in line with the company philosophy and will appeal the existing customers who are aware of Charlie’s brand image. They can expand their operations in existing markets of New Zealand and Australia but also can enter the Asian markets where the economies are growing rapidly their population is increasly becoming more and more health conscious. They can also choose to manufacture products in those countries where labor and operation costs are less and production...