1. By :
Nikhil Agarwal
Aishwary Bhandari
Pradeep Kumar
BS-B
2. It is a strategy that takes the organization into both
new markets and products or services.
3. Economies of scope
Corporate managerial capabilities
Increase market power
Respond to environmental change
Spreading risk across a range of businesses
Expectations of powerful stakeholders
4. It is a strategy development beyond current products
and markets , but with the capabilities or value
network of the organization.
5. Related diversification options for an organization
BACKWARD INTEGRATION
Raw materials Components Machinery Product/process
manufacture manufacture manufacture research/design
Raw materials Components Machinery Financing
supply supply supply
Transport
HORIZONTAL
INTEGRATION
Competitive
products
Organization By-products
Complementary
products
FORWARD
INTEGRATION
Distribution Marketing Repairs and
Transport
outlets information servicing
6. Poor understanding of how diversification activities
will “fit” or be coordinated with existing businesses.
Most problems because launch of new business
require considerable time and investment.
Difficult to assess the risks associated with new
investment opportunity.
7.
8. It is the development of products or services beyond
the current capabilities or value network.
It is often referred as a conglomerate strategy.
Involves diversifying into businesses with
No strategic fit
No meaningful value chain
relationships
No unifying strategic theme
9. By exploiting dominant logics
Work effectively in underdeveloped markets
Notas do Editor
Unilever : example of related diversification u can name some of its products.