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Advantages and Disadvantages of Diversification
Business owners are always looking for business growth, so a diversification strategy of acquisition is very attractive. Implementing this strategy efficiently means ensuring that it will increase the company’s competitive advantage, improve the cost structure, satisfy customer’s needs, etc. Therefore business owners need to understand the differences between related and unrelated diversification strategy, and acknowledge the advantages and disadvantages of both.
A related diversification strategy is a process of adding or expanding existing products, services or markets. …
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