Diversification path selecting

What is the Diversification path selecting?

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Choosing the Diversification Path: Unrelated V/S Related Businesses:

1. Once the decision is made to follow diversification, the firm must select whether to diversify into unrelated businesses, related businesses, or some combination of both. Businesses are said to be connected when their value chains acquire competitively useful cross-business value chain match-ups or strategic fits. Businesses are called unrelated when the activities comprising their individual value chains are so different that no competitively useful cross-business relationships are available.

2. Strategy Alternatives for a Company Looking to Diversify seems at alternatives for companies desiring to diversify.

3. Most companies’ errand related diversification strategies because of the performance-en¬hancing latent of cross-business synergies.

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