Question:
What does Ansoffs unrelated diversification strategy cover?
Author: Hjalmer PedersenAnswer:
Diversifying to products or services with no relationships to existing businesses. Value may be created: • SBUs may benefit from being part of a larger group • Corporate brand recognition may lift some SBU • A larger organisation can can aggregate purchasing and so reduce costs, or cross-subsidise Conglomerate: extreme form of unrelated diversification. “a combination of multiple business entities operating in different industries under one corporate group, usually involving a parent companyandmanysubsidiaries”
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