What Is Business Diversification?

Relevant diversification is one of the forms and strategies of diversification. There are some obvious substantial similarities in the various businesses operated by enterprises, which emphasizes that multiple businesses can largely share the company's technology, value chain activities and other resources and capabilities of the company. The goal is to create synergies in the business portfolio that the company operates. It should be noted that correlation is only a necessary condition for synergistic effects, not a sufficient condition. ^[1]