Diversification strategies involve a firm stepping beyond its existing industries and entering a new value chain. Generally, related diversification (entering a new industry that has important similarities with a firm's existing industries) is wiser than unrelated diversification (entering a new industry that lacks such similarities).
- Identify a firm that has recently engaged in diversification. Search the firm's website to identify executives' rationale for diversifying.
- Do you find the reasoning to be convincing? Why or why not?
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