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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 479 |
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This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. There are two types of diversification, namely related and unrelated diversification. Related diversification means that company remain in a market or industry with which company are familiar...
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For example, a soup manufacturer diversifies into cake manufacture. There are in the food industry. Unrelated diversification is where company has no previous industry or market experience. For example a soup manufacturer invests in the rail business.
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