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Strategy - Diversification

  • ali@fuzzywireless.com
  • Jun 13, 2022
  • 1 min read

A diversification strategy is centered on developing a product or entering a new market different from its core business. There are four categories of diversification:

  1. Limited: low level of diversification (70-100% revenue from single business)

  2. Related-Constrained: moderate level of diversification (Products and services are highly linked)

  3. Related-Linked: moderate level of diversification (few or disparate links between businesses)

  4. Unrelated: high level of diversification (no linkages between businesses)


Corporate synergy means when the sum of a firm's parts performs better than each part individually.



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