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Research Paper | Management | Georgia | Volume 6 Issue 4, April 2017

Diversification Strategy Benefits and Business Portfolio Analyses of the Company

Olga Pachulia ^[2]

Abstract: The following research paper was devoted to discuss benefits of diversification strategy and three variations of the extension are proposed to firms to diversify the mix of businesses they persist a strategy of related diversification, a strategy of unrelated corporate diversification and a strategy of limited corporate diversification. Besides, diversification strategy is recommended for companies to enlarge business, stabilize revenues and spread risk. As the paper shows diversification strategy does not guarantee to create sustainable competitive advantage and business portfolio needs special selections of portfolio, diversification can be implemented with other business strategies together. Article suggests portfolio analyze of Georgian diversified company and exhibits VRIO framework for it. Also, the paper names and analyzes the factors, that made the company valuable, rare, hard-to-imitate and what helped to gain competitive advantage over competitors.

Keywords: business, diversification, management, portfolio, strategy,

Edition: Volume 6 Issue 4, April 2017,

Pages: 1203 - 1206

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