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LEISURE POLICY Esteban Carracas – NOVEMBER, 2003 IMPORTANCE OF COMMERCIAL PROVIDERS OF LEISURE 1. WHY IS IT IMPORTANT FOR COMMERCIAL PROVIDERS OF LEISURE TO DIVERSIFY INTO DIFFERENT AREAS OF PROVISION? It is important for commercial providers of leisure to diversify into different areas of provision in order to maximise income, raise awareness (profile of company) for example increase one shop to one hundred shops, spread over the country, providing the same product/service. This would make the company a specialist market niche. This process is known as horizontal integration, where the company chooses to have a core business which they expand on but do not vary the product or service they are providing. An example of a special market niche company would be “David Lloyd” which concentrates on health and fitness as opposed to a diversified company which would be for example “Whitbread” who now own Marriot Hotel, Costa Coffee, Pizza Hut and Travel Inn. The disadvantage of not diversifying into other areas is that the company could be at risk of being taking over by a diversified leisure company such as Whitbread.
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