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Diversification: The growing confusion
Author(s) -
Reed Richard,
Luffman George A.
Publication year - 1986
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.4250070104
Subject(s) - confusion , diversification (marketing strategy) , legitimacy , terminology , denunciation , identification (biology) , business , computer science , risk analysis (engineering) , industrial organization , management science , economics , marketing , political science , law , psychology , linguistics , philosophy , botany , politics , psychoanalysis , biology
Over the years the concepts of diversification have been simplified and a system of shorthand has developed for discussing the issues surrounding the strategy. Because of this a confusion in terminology has developed and sight of the fundamental principles involved has been lost within the vagaries of fashion. Selection of a particular strategy ought to be based on the clear identification of the benefits that the strategy will offer. Those benefits should be used to help solve specific problems. Only by returning to this type of thinking can the legitimacy of diversification be revived and the alternating acclamation and denunciation of the strategy be overcome.