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a) The industry attractiveness
b) The cost of entry
c) The competencies required
d) The cross business strategic fit

Conclusion

Diversification becomes an attractive strategy when a company runs out of profitable growth opportunities in its original business and diversification can be in form of acquisition, internal startup, or joint ventures/strategic partnership.

Concluded.

* Contributed by -
Ankit Kapoor & Gaurav Dubey,
PGDBM - 2006,
IMT Ghaziababd.

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