There comes a time in the evolution of a company when executives, investors, stockholders, and other stakeholders may decide that, for the company to grow, a diversification strategy should be considered. Diversification means that the company would step outside the industry in which it is currently operating and take on a new value chain. There are three different types of diversification.

• What are the three types of diversification, and how do they differ?
• Identify a company that has chosen a diversification strategy as a way to grow the company
• What are the reasons this company chose a diversification strategy as a means for growth?
• Which type of diversification strategy was followed?
• Are there any similarities between the current industry and the new industry in which the company will be competing? Describe them.
• What are the differences between the current industry and the new industry in which the company will be competing? Describe them.
• Do you agree that a diversification strategy was the best choice for growth? Why or why not?