Conglomerate Diversification (Unrelated) takes place when management realizes that the current industry is unattractive and that the firms lacks outstanding abilities or skills that it could easily transfer to related products, or services in other industries, the most likely strategy is conglomerate diversification – diversifying into an industry unrelated to its current one. Rather than maintaining a common threat throughout their organization, strategic managers who adopt this strategy are primarily concerned with financials considerations of cash flow or risk reductions.
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