WHAT IS UNRELATED DIVERSIFICATION?

WHAT IS UNRELATED DIVERSIFICATION?

• Unrelated diversification involves NO
  • Common linkage of strategic fit among a diversified firm’s lines of business
  • Meaningful value chain interrelationships
• Corporate strategy approach
  • Venture into “any industry & any business in which we think we can make a profit”
• Firms pursuing unrelated diversification are referred to as CONGLOMERATES
  • NO unifying strategic theme

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