Two types of diversification are:
concentric diversification, where the corporate parent launches a new, separate business by leveraging strengths of an existing business, such as the parent of a snowmobile maker starting a separate, independent personal-watercraft business to compete against Jet Ski and Sea-Doo; the two businesses have some identical manufacturing processes, parts and dealers
conglomerate diversification, where the corporate parent gets into a totally unrelated business, such as Berkshire Hathaway owning GEICO, Jordan’s Furniture and NetJets, among others
What are the advantages and disadvantages of concentric diversification?