Considering Diversification
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When should diversification be considered?
- When a company's profits are being squeezed and it needs to increase its net profit margins and return on investment
- When a company lacks sustainable competitive advantage in its present business
- When a company begins to encounter diminishing growth prospects in its mainstay business
- When a company has run out of ways to achieve a distinctive competence in its present business
- When a company is under the gun to create a more attractive and cost-efficient value chain
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Solution Summary
This response outlines when a company should consider diversification.
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