Diversification in the Era of Convergence

Corporations have pursued diversification strategies for decades as a means by which to create long-term value and achieve sustained growth. Historically, companies such as General Electric diversified via inorganic acquisitions, in addition to investing heavily in R&D programs.
We characterize these traditional diversification investment models as “Acquire” and “Invent.”
However, the evolution of the industrial landscape into one of increasing “convergence” and uncertainty has given rise to … [ Read more ]