As firms grow, they often want to expand their markets, and their products. In the last two weeks, you read that both Crown, Cork and Seal and Lincoln Electric expanded into international markets. This approach to growth is often referred to a Geographic Diversification. In class we also noted the difference between Related (significant similarities to the current industry) and Unrelated diversification. Examine the Disney case. There is a significant amount if information on Disney presented, particularly from 1983 - 2000. You should note performance trends in this period. You should also analyze their diversification strategy. How did they diversify? Evaluate the various approaches. Was each successful? Unsuccessful? What made each diversification attempt successful or unsuccessful? In class in our discussion of a related diversification approach we discussed the logic of applying a firm;s distinctive competence to new products like Honda and P;G have done. This is one approach by which to assess diversification strategy.
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