General characteristics of diversification strategies at the stages of the enterprise’s life cycle

DOI: 10.31673/2415-8089.2019.045463

Abstract

This article has considered and characterized the main tasks of the basic enterprise diversification strategy. There has been defined the stages of the life cycle of an enterprise as a sequential orderly process of predictable changes in the activity of an enterprise with a defined sequence of states during on specific period of time. There has been determined the peculiarities of the decision making mechanism regarding the implementation of the diversification strategy at different stages of the enterprise’s life cycle. There have been defined the essence of the concept of "naive diversification strategy", which means that, investor invests in a number of various assets and expects to increase the probability of earning income from this specific portfolio. There have been shown the scheme for distribution potential boundaries of concentric and unallocated diversification strategies. There has been determined the strategic opportunities of the enterprise as a result of the development and implementation of the basic principles and levers of related diversification in their business activities. There has been defined the most important choice factors of diversification growth strategies in the context of globalization processes.

Key words: diversification, diversification strategy, enterprise’s life cycle, resourcecompetence potential, strategic opportunities.

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