Combination Related-Unrelated Diversification Strategies
1. There is nothing to preclude a company from diversifying into both related and unrelated businesses.
2. Indeed, in actual practice the business makeup of diversified companies varies considerably:
a. Dominant-business enterprises – one major core business accounts for 50 to 80 percent of total revenues and a collection of small related or unrelated businesses accounts for the remainder
b. Narrowly diversified – 2 to 5 related or unrelated businesses
c. Broadly diversified – wide ranging collection of related businesses, unrelated businesses, or a mixture of both
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