What are the forms of diversification? (500 words)

- Please provide introduction to diversification and why firms do it as a strategic move.

- Discuss the main forms of diversification:- Discuss the main forms of diversification:
- Business interrelated diversification - moving into new businesses with some sort of relation to the current operations (i.e. either vertical, horizontal or conglomerate).
- Offshoots of the main activities: here we can mention production of unrelated products to the core businesses.

- Explain each in more detail:- Explain each in more detail:
- Vertical diversification: developing the supply chain further by connecting operation to other nodes of the network ( e.g. manufacturer also has its own store)
- Horizontal diversification: Instead of moving into the same products or services as the main ones in the same supply chain stage.
- Concentric diversification: stepping up to the new product that does not only share the same target but also based on the core ideas of the existing product.
- Conglomerate diversification: venturing into unrelated product categories /taking on new ventures.

- Talk about why you plan to diversify, what risks and requirements this will entail, and what kind of diversification you are planning.

- Make use of the 1-2 real company examples, where each diversification form is.

- Highlight the main ideas and the points made of diversity strategies.