One of the most successful diversification strategies is to diversify into unrelated products or unrelated markets to spread the risk.

Question

Quizplus · Accepted Answer

Diversifying into unrelated products or markets can spread risk but is often less successful than related diversification because it may stretch resources too thin and the company may lack expertise in the new areas. Related diversification, where the new products or markets are connected to the company's existing operations, tends to leverage core competencies and is generally seen as a more effective strategy.

One of the Most Successful Diversification Strategies Is to Diversify