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Diversification

In: Strategic Logic

Author

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  • J. Carlos Jarillo

Abstract

In the preceding chapters we identified ‘company’ with ‘business’, that is, we spoke as if companies were dedicated to just one thing. In the real world, of course, this is not the case. There are few companies that are not engaged in several different things, selling not only a variety of products to different markets, but trying to compete in really different businesses. In fact, diversifying beyond their initial nucleus is a constant in the life of companies. So much so, that we can describe the typical development of the company as one of growing along one (or more) of three axes: geographic, vertical integration and products (Figure 6.1). In the previous chapters we applied strategic logic to the two first growth vectors of the company, and in this chapter we will analyse how to move along the third.

Suggested Citation

  • J. Carlos Jarillo, 2003. "Diversification," Palgrave Macmillan Books, in: Strategic Logic, chapter 0, pages 153-173, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59814-0_7
    DOI: 10.1057/9780230598140_7
    as

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