Product diversification and its perceived effect on growth of companies

Abstract

The main objective of this study was to identify the different product diversification strategies that have been put in place at NMG and to determine their effects on growth as perceived by NMG Management. The study adopted a case study design which provided an opportunity to examine the different product diversification strategies that have been implemented over the years. The study used primary data which was collected through a structured questionnaire from the middle and senior management staff of the Nation Media Group. The collected data was edited, coded and analyzed using the technique of content analysis. From the results of the study, it emerged that a number of product diversification strategies are evident at NMG, these embrace market expansion which included the company going across borders to expand its operation, introduction of new product line to increase market share in broadcasting and digital divisions, and finding new users for the current product. This is evident in that these days the print newspapers can be read through the internet every day. The study concluded that NMG has deliberately developed and implemented diversification strategies that have seen it grow to its current level. On the basis of the findings presented above; it was recommended that Nation Media Group should continue with the development and implementation of diversification strategies. Suggestions were made that a similar study be replicated for other major players in the industry.