BUS 485 Topic 5 DQ 1
What are the different levels of diversification firms can pursue by using different corporate level strategies and what are the advantages to diversifying their operations?
You have your low, medium, and high diversification. Essentially firms can pursue different strategies in diversifying for various reasons. Companies that have higher levels of diversification can offer other products or services and keep profits up during down times of other areas of business. This will also offer more things to clients keeping a larger client base. A large area of diversification allows a company to spread its offerings, I think of companies like amazon, this company offers so many products that they would theoretically be selling year around in bad economy or good. While a company that say only sells one service or product relies very heavily on that service or product. Of course I’m sure there are different pros and cons for the various levels of diversification, I feel that too much can make a company not have a specific core competency if they aren’t careful.
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