Diversification Strategies

 

“There are two general types of diversification strategies: related and unrelated. Businesses are said to be related when their value chains possesses competitively valuable cross-business strategic fits; businesses are said to be unrelated when their value chains are so dissimilar that not competitively valuable cross-business relationships exist.”(Strategies Management, Fred R. David, page 143)

 

Related Diversification

Related diversification refers to adding new but related products or services to an existing business.

As a company of soccer school, we can develop a new but related business, which is focus on selling our new techniques of practice to other football clubs; the importance of our new method is that it implements new technologies to control and evaluate different aspect such as the run meters, the burned calories, and so on. In addition, the method of practice is specialized depends on the needs, position and factors to strengthen for every child, so one of the most important steps in this process is the evaluation to recognize those factor and also to find out the weakness and strengths that every child have and the also to figure out the most appropriate position based on his ability and skills.