MGT 301 Chapter 8: Corporate Diversification
Types of corporate diversification: Unrelated diversification
no competency linkages in products, services, technology, or distribution between businesses
Types of corporate diversification: Related - linked
only some businesses share competencies in products, services, technology, or distribution
Types of corporate diversification
1) Single business firm 2) Dominant-business firm 3) Related-constrained firm 4) Related-linked 5) Unrelated diversification (conglomerate)
Geographic diversification
a strategy in which a firm is active in several different countries
Product Diversification
a strategy in which a firm is active in several different product markets
Types of corporate diversification: Related - constrained firm
all businesses share competencies in products, services, technology, or distribution
Diversification
an increase in the variety of products and services a firm offers or markets and the geographic regions in which it competes
Product-market diversification
corporate strategy in which a firm is active in several different product markets and several different countries
Economies of Scope
when the value of the products or services a firm sells increase as the number of businesses in which that firm operates increases
Types of corporate diversification: Dominant business firm
where a company derives 70-95% of its revenue from a single business, but it pursues at least one other business activity
Types of corporate diversification: Single business firm
where a company derives 95% or more of its revenue from one business