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Diversification
DIVERSIFICATION: finance~ includes spreading investments that reduce risks!!
Horizontal add new products not related to the current products- this stratgy increase the dependence on certain market segments.!!
It is a stratgy to increase market!!
Conglomerate has very little relationship with the firm's current business. the main reasons of adopting such a strategy are first to improve the profitability and the flexibility of the company, and second to get a better reception in capital markets as the company gets bigger.
Concentric meaning that there is a technological similarity between the industries, which means the firm is able to leverage its technical know-how to gain advantage!!
You spread your money around to try and make more!!
3types of diversification
