Diversification Strategy (With Real World Examples) | Strategic Management

3M Company, formerly known as Minnesota Mining and Manufacturing, created some of the most iconic name brand products in the American economy. Some of these brands include Scotch tape, Post-It Notes, Scotchgard and others. The company also has a significant presence in many industries, including health care, security and protection services, and communications.
Similarly, as one the largest corporate entities in the world, Samsung Group’s highly diversified business has an even wider range of industries including financial services, information technology services, machinery, shipbuilding, and chemicals.
As you can see, both 3M and Samsung expanded their business through diversification. So what exactly is the diversification strategy? Why do firms implement it? And what are the major types of diversification strategies? In this video, I will answer these questions for you.