unrelated diversification

Unrelated diversification is a strategy where a company expands into new businesses or markets that are not connected to its existing operations. This means the company is entering areas that don’t have much to do with what it already does, for example, a car manufacturer starting a food delivery service. The goal is to reduce risk by spreading investments across different industries, rather than relying on one core business. While it can increase opportunities, it also requires managing different types of businesses, which may have little synergy or shared expertise.