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Implementing the unrelated product strategy
Author(s) -
Dundas Kenneth N. M.,
Richardson Peter R.
Publication year - 1982
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250030402
Subject(s) - divestment , argument (complex analysis) , product (mathematics) , portfolio , business , industrial organization , product strategy , strategic management , new product development , economics , marketing , finance , product management , biochemistry , chemistry , geometry , mathematics
Abstract There has been considerable debate over the viability of the unrelated product, or conglomerate strategy. The financial arguments for and against its viability are well known. However, the administrative imperatives for its successful implementation have not been well investigated. The paper argues that there are a number of critical administrative contingencies for successful implementation of this strategy which only a few unrelated product firms have recognized. These concern policies dealing with acquisition, divestment, portfolio structure, management and organization. The paper discusses each in turn, describing specific instances of success and failure to illustrate the major points of the argument.