Hubbard's Foods Diversification Strategy
Added on 2020-03-02
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Running head: BUSINESS STRATEGYBusiness StrategyName of the Student:Name of the University:Author Note:
1BUSINESS STRATEGYQ.3) Diversification Strategy Hubbard’s Foods Limited is a cereal manufacturing company situated in Auckland. Thecompany was found by Dick Hubbard, who started the family business in the Auckland city ofNew Zealand (Sbc.org.nz 2017). The eventual growth of the business is much commending.However, maintenance of the sustainable position in this ever growing competitive scenario, it isnecessary for the company to undertake the relevant strategic decision. The diversificationstrategy is quite fruitful for maintaining the business sustainability. Apparently, thediversification strategy focuses on increasing customer base (Serrano, Fernández-Olmos andPinilla 2015). It is notified that the company is aiming at selling both the high range products tolow range products. In order to ensure growth, Mr. Dick Hubbard is promoting the high qualitycereals under the brand of Hubbard’s Foods Limited. Moreover, the company is also payingattention towards manufacturing the unique product lines specifically for the private labels of thesupermarket. Products like cornflakes and puffs are included in such private labels that are lowerend in terms of price range. Mr. Dick Hubbard has also introduced the seasonal variations for the cereal products. Forinstance, people consume at least 10% cereals more in summer than the winter season. It is to beconsidered that the cereal industry has been experiencing the rapid changes in last few decades.Therefore, the company has decided to present the product variations by introducing theMueslistyle Cereals (Sbc.org.nz 2017). The threats from the competitors are quite significant.Concentrating on such competition level, the company has been introducing the diversificationprocess in the product line. Starting from the lower end prices to high price products areavailable for the customers. Such product diversification strategy is much helpful in generatingthe customers’ attention. It is needless to mention that the preference of the high quality products
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