A Model for Execution of Product Concentric Diversification Strategy: A Case Study of Kadbanoo Company

Abstract

According to worrying rate of failure of product concentric diversification projects in Iran, critiques to concentric diversification models of existing literature, and regarding the high importance of concentric diversification in companies growth, this research aims to introduce a model for execution of product concentric diversification in Iranian food processing companies. In this research, Kadbanoo Company in Iran is chosen and studied by using action research method and pluralistic approach. In this company, current process of product concentric diversification and recommendatory product concentric diversification model are explored and defined by using different methods like semi- structured interviews, participatory observation, and document analysis. Then, emerged recommendatory models of the company are implemented and refined according to implementation feedback. Finally, the emerged model is compared with existing models of literature. The result of this research is a unique model for Kadbanoo Company, due to its various context and internal condition. Recommendatory model of this research can solve one of the company’s important problems and can fill the gap of absence of applicable and utilizable models in product concentric diversification.