Session 3
Session 3
Session 3
It is also a long term competitive strategy where unrelated non profitable businesses are sold off and
company is restructured around fewer and fitter businesses
Related diversification case studies- success of Amul, Cadbury ice-cream called dollops , Britannia as
a milk brand
Unrelated diversification – success story reliance, failure story Raymond, cement steel and
petrochemical diversification did not succeed
Success and failure is always case specific and reasons can be different. As a student of this subject
we need to find out why companies diversifyand we need to understand the following dimensions :
Diversify fact: company ha no other alternative but to diversify. Ref case studies – ITC, Manikchand,
Sanjay Gorawad Star Group and DS Group
On the other hand times of india and india today are egs of moving with time as definition of media
had changed
Fiction: it is an illusion or a non reality or wrongly placed confidence that brand extensions will
always succeed
Diversifriction: