L'Oreal pursues a diversification growth strategy through both related and unrelated acquisitions. It has two types of diversification - business level focusing on competitive advantages within industries, and corporate level creating value across industries. L'Oreal acquires companies in related industries like dermatology and different geographies/market segments to reduce risk, utilize resources, and meet consumer needs as part of its long term strategy. It mitigates risks through innovation, marketing, products, and aligning with sustainability. The latest acquisition was of Pacific Bioscience Laboratories for its skin care device expertise.