Solution Preview. In fact, the company does not rely on a single source of income because the product design belongs to different categories. Let us take a hypothetical example. Why or why not? While firms in most industries have thus constrained their diversification strategies, elect… Horizontal diversification involves providing new and unrelated products or services to existing consumers. Strategy best describes this decision the story of Disney is that of a company that has multiple businesses. Unrelated Diversification is a form of diversification when the business adds new or unrelated product lines and penetrates new markets. Diversification of Business | Overview, Strategies & Examples - Study.com Every second, Apple makes $1,444 of profit. In fact, many of Apple's rivals have the same or similar product offerings. Through which strategy should Apple pursue its next big hit? An organization competes in a no-growth or a slow-growth industry. Using the Jacquemin-Berry entropy measure of diversification and the line-of-business data, this study finds that firms with predominantly related diversification show significantly better profit . For years, we've heard that when it comes to investing, diversification is a good thing"Don't . With this strategy, companies develop strategic business units. On the other hand, 'unrelated diversification is the development of products or services beyond the current capabilities or value network' (Johnson, Whittington & Scholes, 2006, p.288). Diversification via Acquisition: Creating Value Unrelated Diversification | Open Textbooks for Hong Kong A decade ago creation of the three products lines apple unrelated diversification strategy the sources of the following types of diversification of,! What is conglomerate diversification example - Animals Guides Most unrelated diversification efforts, however, do not have happy endings. Diversification Strategy - an overview | ScienceDirect Topics All marketing experts say, that a business . Diversification is entering new markets with new products. The Analysis Of Apple's Corporate Strategy - PapersOwl.com You have to diversify by sector, too. high quality standard and continually upgrading the product to keep ahead of its competitors. Diversification Strategies - Mastering Strategic Management - 1st ... Who is Winning: Google, Amazon, Facebook, or Apple? - Medium Another avenue taken in the efforts marks linear versus non-linear structure of diversification-modeling relationship (Palich, Cardinal and Miller, 2000).