Diversification

In today's market, especially in smaller centers, a dealership cannot make a profit on just one brand of vehicle — especially foreign imports. Thus the dealership will diversify by having several brands (e.g., Mercedes-Benz, BMW, and Mazda). A car manufacturer diversifies by making several different kinds of vehicles (trucks, vans, luxury cars, family-size cars, commuter cars, compacts, convertibles, sports cars, etc.) in an attempt to reach every segment of the population. Some dealers or manufacturers may diversify by offering lawnmowers, boat motors, and motorcycles as well as automobiles (e.g., Honda) or even musical instruments (e.g., Yamaha).