Diversification benefits companies in several ways. First, it creates a useful edge against underperformance in the core business, since any non-core activities often have different lanes and avenues than the core. Second, it allows companies to leverage their resources into new areas, giving them a one up against competitors who may be just starting. Third, it sometimes produces products or services which can eventually be integrated back into the core business, strengthening it.
Investing in non-core businesses often looks like the vast majority of what some companies likes to say, “pre-revenue,” and that shows. Its separation in financials also allows the core business to shine even more, freed from the financial drag of the other endeavors.
Reinvest profits into new cutting edge features, products or services that they believe will increase value for shareholders. Whenever, a new trend is surfacing among several large-cap tech stocks that reward shareholders through share buybacks and returning cash in the form of dividends
e-Marketing to sell their products and services in the international market, where they see it is a way to attract more consumers as well as to increase the market share while maintaining cost.
Videoconference technology to provide a better service, where they can speak directly to the customers through their computers. The company will be able to identify the exact needs of a customer/client and they will be able to fulfil the needs of them. By using this video technology they can answer on the spot to the customer and it will attract more customers to the website.