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.

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