Title: What is Specialization? - Definition | Meaning | Example
Headings: What is Specialization?
What is Specialization?
What Does Specialization Mean?
Example
Summary Definition

Content: The benefits of specialization for consumers is a greater selection of goods, whereas for businesses is greater economic efficiency and opportunities for growth for competing firms in the same industry. Let’s look at an example. Example
Company A is a Greek wine producer and exporter in several countries around the world. The company focuses on different segments in the market, based on what customers need, and it uses market segmentation to meet its objectives by effectively using its resources. Also, since the market segments are independent, the risk of failure is mitigated through diversification. Following the market segmentation, Company A focuses on product specializing. Since Greece specializes in wine production, it can be naturally good at producing wine and reap the benefits of economies of scale. This means that as production increases, the average cost of production decreases. Product specialization also means that the company exports wine to particular markets abroad, seeking to expand its business and enhance its global brand name. Summary Definition
Define Specialization: