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:
Limited: low level of diversification (70-100% revenue from single business)
Related-Constrained: moderate level of diversification (Products and services are highly linked)
Related-Linked: moderate level of diversification (few or disparate links between businesses)
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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