Diversification as a modern growth strategy in agriculture
Journal Title: Annals of Marketing Management & Economics - Year 2017, Vol 0, Issue 0
Abstract
The aim of the article is to examine the theoretical foundations of diversification strategy and identify the characteristics of its application in agriculture. The relevance of diversification strategy research is that its implementation allows additional income to be made, ensures financial stability for enterprise when demand for basic products fluctuates, and strengthens the competitive position in chosen markets. The importance for enterprise of implementing growth strategy is discussed, as is the economic essence of “marketing strategy”. Dynamic changes in the market force producers to review their activity and seek a more optimum development strategy. Diversification can be the optimal strategy when market conditions are uncertain. The article analyzes the essence and types of diversification along with the benefits and disadvantages of diversification strategy. As a result of the research, features of diversification strategy for the agricultural sector were analysed, the essence of which may be found in the unification of agricultural products with other kinds of activity. This is done to decrease the risk arising from receding demand for main agricultural products. The study found that the most effective and least risky strategy is vertical diversification, which involves obtaining a synergistic effect and reducing transaction costs (through the use of a single production chain from field to consumer).
Authors and Affiliations
Kateryna Zavalniuk
Keywords
Related Articles
- EP ID EP197946
- DOI 10.22630/AMME. 2017.3.1.11
- Views 111
- Downloads 0
Macroeconomic stability and social progress in the EU member states and Ukraine
he main purpose of the study is the role and influence of social factors on macroeconomic stability. The research is based on the hypothesis that countries with greater macroeconomic stability achieve greater social prog...
International competitive intelligence
Creating international competitive intelligence is the foundation of an enterprise’s entry and existence in a foreign market. Good preparation for international trade and the exchange of goods and services requires intel...
An interdisciplinary approach to marketing
This article looks at the issue of the interdisciplinary approach to marketing. The purpose of this study is to present the contribution of various sciences to the creation and emergence of marketing as an independent di...
Bitcoin as and example of cryptocurrency - current state and perspectives
The idea of anonymous digital money existing outside of traditional banking system lasts at least 40 years. It appeared as soon as technological solutions, which such a system requires, became available. The article anal...
Age management as an opportunity to manage employees effectively in the light of demographic changes
The goal of this article is to analyse the main threats and benefits that accompany the implementation of age management policy, a method that enables workers aged 45+ to be highly effective. The article presents a demog...