GENERAL KNOWLEDGE

Detailed explanation-1: -As Hill and Jones remarked, “Unrelated diversification is diversification into a new business area that has no obvious connection with any of the company’s existing areas.” The value chains of the businesses are dissimilar.

Detailed explanation-2: -a growth strategy in which a company seeks to grow and develop by adding new products to its existing product lines to attract new customers; also called convergent diversification.

Detailed explanation-3: -Horizontal diversification is when your business expands into products or fields that are somewhat unrelated to current business activities. Concentric diversification is when your business starts producing products that are similar in the type of technology or expertise it requires to produce them.

Detailed explanation-4: -Diversification Strategies Concentric diversification involves adding similar products or services to the existing business. For example, when a computer company that primarily produces desktop computers starts manufacturing laptops, it is pursuing a concentric diversification strategy.

Detailed explanation-5: -Concentric diversification allows businesses to achieve large goals with smaller working parts and less of a financial cost. A business owner that employs a concentric diversification strategy seeks to broaden his distribution network without going too far afield in what he offers his target audience.