Companies pick strategies to pursue and they often work perfectly well. But sometimes the PESTEL factors or the industry changes and a company needs to evolve their strategy or even pick a whole new industry (Diversification Strategy). We are also exploring different types of corporate diversification to assess the advantages and disadvantages associated with each strategy.
These four companies (Fossil, GoPro, Neiman Marcus and Amazon) are facing pressure to diversify because their industry is facing huge challenges and their future looks bleak OR they have grown so big in their industry that they are running out of growth.
Pick one company and analyze that companyâ€™s current industry. Determine how the company should change strategy and diversify itself into better financial shape.