What Is Related versus Unrelated Diversification?


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Diversification

 

Related versus unrelated diversification- Diversification opportunities are either related or unrelated. In a related diversification opportunity, the present target market and/or retail format shares something in common with the new opportunity. This commonality might entail purchasing from the same vendors, using the same distribution and/or management information system, or advertising in the same newspapers to similar target markets. In contrast, an unrelated diversification lacks any commonalty between the present business and the new business.

 

 


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