Diversification seldom results in added long$-$term value for shareholders unless

it offers potential $1+1=3$ or "synergy" benefits because of valuable cross$-$business relationships among the value chains of the corporation's different businesses.

passes not only the industry attractiveness test but also offers the best route to $2+2=4$ benefits.

this strategy is less capital intensive and usually less risky than unrelated diversification.

it can propel the company's business forward and help it gain ground over its market rivals.