Related Diversification
Bibliographic Data
| ID | 23577274 |
|---|---|
| Authors | Paul Simmonds (University of Warwick, corresponding author) |
| Year | 2015 |
| Pages | 1-2 |
| Publication date | 2015-01-22 |
| Open Access | Yes |
| Type | CHAPTER |
| Venue | Wiley Encyclopedia of Management (SOURCE_BOOK) |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/9781118785317.weom120148 |
| OpenAlex | W4252210464 |
| ISBN | 9781118785317 |
| Language | EN |
| References cited | 3 |
Related diversification is the addition of new activities that have some connection with existing activities. Relatedness may be through adjacent positions in the value system (vertical relatedness) or through similarities in a “core skill” primarily in processes or technologies used (horizontal relatedness). According to the Model of Corporate Development, as single business companies grow they add new activities that are related to their core activities to become dominant business companies and, as those related activities become more substantial, related diversified companies. Some related diversifiers continue to add further unrelated activities to become unrelated diversified companies (conglomerates). In recent years, diversified companies have narrowed their activities seeking greater focus.
Business · Core (optical fiber) · Diversification (marketing strategy) · Economic geography · Geography · Industrial organization · Telecommunications · Economic Development and Digital Transformation · Engineering · Marketing
| Highly cited | No |
|---|