If you’re worried that today’s inflation may lead to a recession, you’re not alone. Many companies may be looking for diversification strategies to weather recessions. While this is an intelligent and preparatory tactic, it can also mean that companies need to hire executives with experience in diversification. So if you’re recruiting online for executives, learn more about diversification, so you hire the right team to take your company to the next level.
Leveraging a market diversification strategy can help companies drive growth and survive a possible upcoming recession.
What Exactly Is Market Diversification?
Diversification is a corporate business strategy where a business can enter into a new industry or market, creating a new product and further diversifying its offerings.
Popular Diversification Strategies
There are three significant diversification strategies to weather recessions when businesses are trying to expand their current market.
1. Concentric Diversification
Concentric diversification is when a company adds a similar service or product to its existing business model. A great example is Apple, which started building desktops, branched out to laptops and music devices, and is now a leading retailer for smartphones with their popular iPhone.
2. Horizontal Diversification
A horizontal diversification model involves adding new, unrelated services or products and offering them to existing customers. For example, when Amazon.com acquired Whole Foods, this was a horizontal diversification strategy because they could offer existing customers organic food products.
3. Conglomerate Diversification
Conglomerate diversification is when a company adds new services or products entirely unrelated. A superb example is Disney that went from films to creating and operating entertainment parks.
Companies usually diversify to help earn higher profits and recession-proof their business model, as this can mitigate risks in an industry downturn.
Recruiting Online
We understand that diversification doesn’t happen overnight, and that’s why you need to have a team in place that can help leverage your current products but expand your future marketing.
Unfortunately, your current team may not be up for the challenge, which leaves you recruiting online for an executive team.
When recruiting online, do your research and use an Applicant Tracking System (ATS) program, such as Ninja Gig, to help you stay organized and keep track of all your applicants.
If your company is looking to diversify and looking for executives or employees specializing in a new product or service, consider listing job applications online with Ninja Gig. Our easy-to-use applicant tracking system creates an automated hiring process for online recruitment. Sign up today for a free trial to see how Ninja Gig can help increase your job application exposure and help track job applicants in today’s marketplace.