In: Economics
Review Unilever's company line up of brands and Businesses. Is Unilever's strategies best characterized as related, unrelated diversification or is it a little of both?
In related diversification, a firm expands it existing products by adding new products which are similar in nature. For example, if a mobile manufacturing company diversifies into the business of wireless communication, this will be an example of related diversification.
In unrelated diversification, a firm expands into products which are not similar or connected in nature. For example, when a mobile manufacturing company diversifies into the business of cloth manufacturing, it will be an example of unrelated diversification.
Unilever is diversified in goods which are similar and related as well as dissimilar and unrelated. For example, Unilever is into various types of products related to foods and beverages. This is an example of related diversification. In addition, Unilever is in the business of healthcare products, personal care products, foods, and beverages, etc. So, this is an example of unrelated diversification.