Diversification-differentiation can be powerful strategies

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Diversification/differentiation can be very powerful strategies--being that if one facet of the enterprise falters, there are other segments that can keep the company afloat while leaders rethink and re-imagine new ways to recapture its target customers. Further, you may have noticed that several fast food chains have aligned in the very same way, keeping their brand recognition, but incorporating with another chain so that one can stabilize the other during tougher times. Are you concerned that too many smaller banks are merging with larger ones--again--thus, diminishing competition and causing stock prices to rise at the same time? If, say, Nestle is their biggest competitor, who has diversified significantly, do you think that Hershey is in a strong position today?

Reference no: EM132186688

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