Diversification Strategy in Dawlance:

“Motivating people is prioritized over revitalizing assets”

 Strategy formulation steps:

Mission and Vision:

Define a clear and inspiring mission and vision for your business that outlines your purpose and
long-term goals.

SWOT Analysis:
Conduct a thorough analysis of your business's strengths, weaknesses, opportunities, and threats
to identify key strategic areas.

Target Market:
Clearly define your target customer segments, their needs, and preferences, ensuring your
products or services meet their demands.

Competitive Advantage:
Determine how your business will differentiate itself from competitors, whether through
innovation, cost leadership, or unique value propositions.

Action Plan:
Develop a detailed action plan that outlines specific goals, timelines, and resources needed to
implement your strategy effectively, along with key performance indicators (KPIs) to measure
success.

 Strategy Implementation:

Market Research:
Conduct thorough market research to identify potential product categories and markets where
your brand can successfully diversify. Analyze consumer preferences, trends, and competition.
Product Development:
Develop new products or product lines that align with your brand's strengths and expertise while
addressing the needs and demands of the target market. Ensure that these products offer unique
features or benefits to stand out.
Branding and Positioning:
Define a clear brand strategy and positioning for the new products. It's essential to maintain
brand consistency while adapting it to suit the diversification. Highlight the qualities that make
your brand trustworthy and reputable.

Distribution and Marketing:

Establish effective distribution channels to reach the target market. Develop a comprehensive
marketing plan that includes advertising, promotions, and online/offline presence. Tailor your
marketing efforts to suit the specific needs of each new product category.

Risk Management:
As you diversify, be prepared to manage the associated risks. This includes monitoring the
performance of new products, tracking market dynamics, and having contingency plans in case
certain product lines or markets underperform.

 Strategy Evaluation:

Financial Analysis:
 Assess the financial viability of diversification by conducting a comprehensive cost-
benefit analysis. Consider initial investments, operational costs, and revenue projections.
 Calculate return on investment (ROI) and payback periods to determine if the new
products or markets will generate profits in a reasonable timeframe.

Market Research:
  Analyze the target markets and competition in the new product categories or
geographical areas. Identify market size, growth potential, and customer
preferences.
 Evaluate the level of demand and potential market share the business can capture
in the new segments.

Synergy and Alignment:

 Ensure that the diversification strategy aligns with the core competencies,
resources, and brand identity of the home appliance business.
 Evaluate the potential for cross-selling or leveraging existing customer
relationships to support the new product lines.

Risk Assessment:
 Identify and assess potential risks associated with diversification, such as market
saturation, regulatory challenges, or supply chain disruptions.
 Develop contingency plans and risk mitigation strategies to address these
challenges.

Performance Metrics:
 Establish clear and measurable key performance indicators (KPIs) for the
diversification initiative. These KPIs should include revenue growth, market
share, customer satisfaction, and profitability.
 Regularly monitor and evaluate the performance of the diversification strategy
against these KPIs and be prepared to make adjustments as needed.

Strategy Evaluation two main questions to answer:

1. How well the organization has done?

2. What actions should be taken in light of this performance?