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Asked by priyam on :Feb. 28, 2018

Can I say Diversification only involves entering …

Can I say Diversification only involves entering in new businesses that are related to the existing…

Can I say Diversification only involves entering in new businesses that are related to the existing business of an organisation?

0

Chiranjibi Mar. 08, 2018

No you can't, let me tell you why.

Although organisations can diversify into businesses that are vertically or horizontally related to the existing businesses, the diversification is not limited to the related businesses.

In conglomerate diversification; the new businesses/ products are disjointed from the existing businesses/products in every way. There is no connection between the new products and the existing ones in process, technology or function.

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