State the disadvantages of such diversification

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A company operating in the field of transporting household appliances in Hanoi. This field has become very competitive and with the recent down-turn in trade, has become only marginally profitable. It has been suggested that the strategic structure of the company should be widened to include other aspects of physical distribution so that the maximum synergy would be obtained from that type of diversification.

1. Suggest two activities which might fit into the suggested new strategic structure, explaining each one briefly. Explain how each of these activities could be incorporated into the existing structure.

2. State the disadvantages of such diversification.

Reference no: EM133316367

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