Diversification: Cozy Cotton's Conundrum

Kignt. we cou$$d spread tne risk or being so neaviry invested in this industry and add some value as the parent company of multiple different companies.

Ebony

So what about related diversification? That just sounds like it makes more sense.

Rachel

What are the advantages of related diversification?

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We might be able to create specialized resources for a given product or business by spanning related industries.

It might help diversify our human capital.

We would simplify our operations.

We could leverage our brand across similar industries.

There's a potential for economies of scope to spread costs across multiple business units.