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From course:

Industrial Strategy 2022

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Question:

What does Ansoffs unrelated diversification strategy cover?

Author: Hjalmer Pedersen



Answer:

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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