This chapter is about two related but different things: acquisitions and diversification. As we shall see, corporate acquisitions or mergers can be undertaken for many reasons. However, sometimes they are undertaken for the purpose of diversification and acquisition is the implementation strategy. Internal corporate venturing can also result in diversification. Diversification involves moving from core areas of activity into completely new and unrelated product/market areas. Diversification, as such, is central to the process of corporate evolution. As products come to the end of their natural life cycles, the longevity of any particular organization will depend on its ability to innovate and in so doing eventually redefine the business it is in, applying existing capabilities to developing new products, perhaps new industries and buying in those capabilities when necessary. It is part of the process of corporate entrepreneurship.
Swipe to navigate through the chapters of this book
Please log in to get access to this content
- Building Value through Acquisitions and Diversification
- Macmillan Education UK
- Sequence number
- Chapter number
- Chapter 11