Why Diversify? Four Decades of Management Thinking

Michael Goold and Kathleen Luchs

in The Oxford Handbook of Strategy

Published in print April 2006 | ISBN: 9780199275212
Published online September 2009 | | DOI:

Series: Oxford Handbooks in Business and Management C

Why Diversify? Four Decades of Management Thinking

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Today, diversified companies are regarded by many commentators as being ‘up to no good’, but for just the opposite reason; they are now charged with being un-competitive. The problem is not that they are over-mighty competitors, but that they add no value to their businesses. How has thinking about the rationale for diversified companies evolved during this period of time? Why has fear of the power of diversified companies been replaced with scepticism about their results? What have we learned, both about diversification strategies that work and those that do not work? There have been relatively few influential ideas about what constitutes a successful strategy for a diversified company. This article explores the development of these ideas, and examines current thinking about corporate-level strategy.

Keywords: diversified companies; diversification strategies; corporate-level strategy; management thinking; successful strategy; management ideas

Article.  9736 words. 

Subjects: Business and Management ; Business Strategy

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