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? Post your initial response and add three peer responses to this question.