Question

To what extent does Apple engage in related diversification? To what extent do they engage in unrelated diversification?

Answer 1

Diversification involves engaging in production/distribution/offering/selling of a good/product which is not of the same genre of primary product ofa firm. For example if a firm sells fruits and then starts selling clothes then it could be said that it has diversified its operations because cloth and food are diverse products.

Diversification could be related or unrelated. Related diversification implies engaging in producing/distributing goods/products which are related diverse or the products lines are smiliar of each other such fruits and vegetables from agricultural activities or leather shoes and leather products etc.

Unrealted diversifiscation refers to engaging in producing/distributiong two very diverse products such as pharmaceutical and fuel products etc.

Apple offers a wide range of products which are related. With lin of Mac computers it added ipods, ipads and iphones. Apple has diversified from software and computer technology to didgital music marketing. music players and mobile phones. But all these lines are related technically and hence can be said as related diversification.

Apple does not provide anything which goes out of line and is very diverse or unrelated to current products hence it has not step into unrelated diversification.