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    Types of Diversification Strategies

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    Discuss some of the various means that firms can use to diversify. What are the pros and cons associated with each of these?

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    According to Strategy Train, the following are the types of diversification:
    * Horizontal/Related Diversification. A company strategy wherein an additional product or service that is related to an existing core business is being offered. This is done through acquisition of other business or competitors or when the company develops new products.
    There are various opportunities to help achieve economies of scale and scope as well as expand product offerings or extend into new geographical areas to find new market. It is good but its complexity makes it hard for the company to manage or coordinate the different businesses.
    *Vertical Diversification. A company either goes back to previous stages of a cycle or moves forward to the next ...

    Solution Summary

    Five types of diversification are described and their advantages as well as disadvantages are explained. The solution is 442 words with 4 non-APA references.