Strategic Management
What are the different levels of diversification firms can pursue by using different corporate-level strategies?
Here are three various amounts of diversification that firms might go after by utilizing various corporate-level strategies.-
Low level diversification- This diversification includes single and dominant level strategy for business. In low level diversification business strategy is the organization try to get maximum revenue from their core business.
The example of such company is Frito-lay.
Moderate diversification strategy- In this business strategies the companies use related diversification strategies. Let us understand what related diversification strategy is. Let suppose there is a company which produces computer and it is their core product but along with that if the company starts manufacturing calculator then it will be called related diversification strategy. The businesses are related with each other. Examples are General Electric.
Very high level diversification- In this business strategy the companies use unrelated diversification strategies. This is the opposite of related diversification strategy. There are various businesses in which companies’ deals into. Example is Samsung. It deals into mobile, home appliances, war equipments etc.
Strategic Management What are the different levels of diversification firms can pursue by using different corporate-level...
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