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There are 2 types of variegation related and unrelated. cogitate diversification is where the guild enters an associated market/ industry darn unrelated diversification enters a market/industry with minimal to no experience at all. Relating these strategies to Blockbuster Inc, menstruum portfolio, it loud seem that H. W. Huskinesss focus is on Diversification. As diversification is the option which entails the greatest risk (and potentially the greatest reward), alternatives moldiness be presented to ensure that a) risk would be minimized and b) sustainability/growth must be achieved. A. reform market penetration by concentrating resources on picture rentals only. Financially, a low-risk option where the company will continue to earn or potentially increase their revenue by obtaining video rental customers from their competitors with forbidden having to leave out on acquiring ewe and unsure coursees. O Sell previously acquired business units (e. Music retailer, TV and film shares, etc) and re trust slap-up on promotions and rebinding as necessary. O Company could further specialize in current fruit merchandise and development. O The concept of lay your eggs in one ring is somewhat of a risk in itself as the company would be fully reliant on the video rental market alone. B. Improve market penetration and venture on market development o This option has the benefits of Option A above without the risk of fully investiture company resources n the local anesthetic video rental market alone.As the local market is coitusly saturated, wise markets may be obtained internationally. O The relative risk is that investing in stores internationally will require capital and that the international markets may not be as responsive as local ones. C. Maintain/improve current slaying of Video Rental sub-unit and Continue Diversification o Relatively risky option where current resources will be apply not only to explore new products precisely explore new market s as well. O This option nonetheless, when executed properly can ensure the companys true not only as a video rental giant but as an frolic company. Done in the wrong way however can lead to disastrous results and the companys downfall eventually. Current capital do through the cash cow of video rentals can be used to subsidize the newly purchased businesses in terms of capital investment, research and the alike(p) to improve the companys position in the market for such. O If met with a legitimate level of success, the company can also explore market/product development for not only video rentals but for their new products as well. V. Decision Option C Maintain/improve current performance of Video Rental sub-unit and Continue Diversification Though risky and action/capital intensive at the start, having the foresight of venturing into other forms related business as well would be most logical.However, through careful prep and prudent investing of current resources for future endeavors (in this case packaging the company as an upcoming changes in market structure and customer demand. consume and TV shares can be considered as backward integration which could prove their hold on the home sport market while putting up entertainment centers can be seen as moving out of the same niche which they have thrived in for the past years. All this, while keeping their thriving home entertainment business segment intact. The draw here in essence is to milk the cow for whatever its got, invest profits to penetrate new markets, engage in new segments and unendingly redesign the company to meet the ever changing needs of the entertainment scene.Should this option fail if the related investments falter, the company should still be open to function at the present tit its strong market presence. devoted however that the industry has been classified as a slow maturation one, opportunities to gain more market share and/or segments should never be overlooked. Researc hing and adapting to new forms media for home entertainment should be focus of Blockbuster Inc (I. E. overlap development) if they want to retain their claim as one of the biggest home entertainment companies. 1 Anions Growth Strategy Matrix, Business Strategy http//www. Acanthus. Com/databanks/ strategy/business_strategy. PH? Asps (Accessed on July 1 2, 2013)