The Success and Failures of Diversification Strategies Essay

The triumph and Failures of Diversification Strategies - Essay ExampleFrom the study it is clear that in order to examine the corporate scheme of diversification, it is important to gain an understanding of the concept. Looking at the theories and types of diversification potentials allow for a developed cognition of this business strategy. As well, looking at firms who have diversified and the eventual results will further the investigation. specialized examinations of General Electric and Berkshire Hathaway in comparison with Tesco, HSBC, and Vodafone will allow for examples of diversified interests to reveal how these strategies are prosperous or without success.As the discussion stressesDuPont is considered the leading pioneer of diversification. The Clayton Antitrust Act of 1914 in the United States limited the dexterity of a corporation to grow through acquisitions and mergers. In 1916 DuPont became the target of an investigation that was pivotal in the future(a) of the s trategy of diversification. DuPont, however, did continue to grow through the additions ofchemicals and paints to its gunpowder. The Cellar-Kefauver Act of 1950 made it more difficult to achieve steep and horizontal integration, thus promoting more diversifications that were the beginnings of the conglomerations. New tariff policies that grew through the 20th century also advance companies to turn to diversifications strategies in order to compete with foreign imports that were cheaper and impeded the progress of companies that depended on the products that were not available.