Identification of the enterprise diversification stages

Oleh Hlushko

E-Forum Working Papers, 2024, vol. 14, issue 3, 73-84

Abstract: The purpose of this study was to identify strategic approaches to enterprise diversification in the context of global economic instability, including an assessment of the effectiveness of multiple types of diversification in enhancing the resilience of business models. For this, qualitative data collection methods were employed, including a case study of public reports of large Ukrainian enterprises such as “MHP”, “Interpipe”, and “SoftServe”. The key findings of the study included the identification of the most effective diversification strategies, including vertical, horizontal, and conglomerate, which reduce risks and increase the competitiveness of companies. Furthermore, the study found that innovation and technological development are key factors in the success of these strategies. The study findings confirmed the significance of a combined approach to diversification depending on the industry and market conditions. It was found that enterprises that actively implement innovations have a better chance of successfully adapting to a changing market environment. It was discovered that vertical diversification allows companies to retain greater control over production processes, while horizontal diversification helps to expand sales markets. Conglomerate diversification is an effective strategy for companies seeking to reduce risks by entering new and unrelated markets. Furthermore, the study demonstrated that businesses that combine these strategies are better equipped to adapt to global economic changes and recover faster from crises. The findings of this study emphasised the need to adapt diversification strategies to the specific conditions of the enterprise and the market, which allows mitigating risks and creating sustainable business models

Keywords: strategies; technological development; business models; economic instability; integration (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:cuc:eforum:v:14:y:2024:i:3:p:73-84

DOI: 10.62763/ef/3.2024.73

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