IB Business Management

I could put this on a number of board but think it's most appropriate here - showing a great example of diversification, allowing for a reference to the Ansoff Matrix - with Xiaomi looking at diversifying revenue streams, and exploiting its strong brand.

It also  highlights the extent to which China is trying to gain a dominant position in the electric car market.  

This is an interesting look at diversification - Ansoff Matrix anyone? - and how Foxconn have moved into the market for electric vehicles, buying an electric vehicle plant in Ohio.

Foxconn are eyeing a move into the sector, translating their production methods for iPhones into the electric vehicle sector. Foxconn is a so-called contract manufacturer, and sees itself a offering other brands a highly efficient manufacturer to lower the cost of EV manufacture. 

Ansoff Matrix the life out of this development, with the news that Crocs are going to launch a cowboy boot, replete with spurs which, the company is a response to consumer demand. Really? 

Either way, it's either a good example of product development - the launch of a new product in existing markets, or, if you think that it's designed to appeal to people outside of the traditional Crocs market, might it be diversification? That said, I can't see many Texas ranch hands wearing them. 

iPhone maker Foxconn is investing in loss-making electric truck manufacturer Lordstown Motors, buying an 18% stake in the company for $170m. I'm not sure why it is doing this - perhaps it thinks that the market for iPhones is relatively mature and that a bet on faster growth elsewhere in a newer market might pay dividends.

That said, it is already involved in maunfacturing electric vehicles in Saudi Arabia, under the brand name Ceer, so perhaps it's hoping that there are spillover effects from this investment too.

An interesting example of diversification, with Chinese tech giant Xiaomi entering the market for electric cars. It will be interesting to see whether this is a successful move or not, and allows for consideration of where it fits in the Ansoff Matrix, the importance of branding and the importance of context. Whilst Xiaomi is a household name in China, the brand doesn't have much global traction.

The notion that the once-frumpy Birkenstock is being floated in the US stock market would once have been seen as fanciful in the extreme. However, the private limited company are looking to raise up to $1.6bn through the initial public offering (IPO) to effectively continue doing what they're already doing in looking at limited product development, with some feeling that the brand name won't support more adventurous forms of risk-taking.  

I've put this here, rather than on my Microeconomic board in the hope that some of my Business Management students might want to read it. It's a lovely example of how firms in the supermarket sector are looking for new ways to compete, although I wonder whether the ill-fated rollout of Tesco's Jacks brand might also apply in this instance.

Is Asda likely to be successful in the convenience store market, or will it, as Tesco's attempt did, result in damage to its brand image. 

It seems that Amazon is looking to further diversify its revenue streams, by extending its reaching into the market for financial services, exploiting the data that it holds on its customers to offer a UK insurance price comparison site. 

Of course, in doing so, it's further exploiting its existing brand loyalty - but is this sort of thing a step too far?