There is ample room for companies to customize their diversification strategies and be defined as being either narrowly or broadly diversified, and when combination related-unrelated diversification strategy options are adopted, they have particular appeal to:
a. those companies with a mix of valuable competitive assets, covering the spectrum from generalized to specialized resources and capabilities.
b. those large multi-business firms, sometimes called conglomerates, because they have a unique capability designed to stabilize earnings.
c. companies with a portfolio of product choices for buyer-related behavior.
d. corporate managers who take on risks without performing due diligence.
e. corporate managers who want to play the corporate parent role without fiduciary responsibility.