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The Dynamics of Big Business by Veronica Binda

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7    The Product Diversification Strategy

Between Single Activity Companies and Business Groups

7.1 STRATEGIC TRANSFORMATIONS IN THE UNITED STATES AND EUROPE

The present chapter is devoted to a study of the dynamics of the strategic choices made by large corporations in Italy and Spain as well as to an the investigation of their reactions to the different opportunities and limitations resulting from the changing context from the end of the wars up to the beginning of the new millennium.

The kind of strategy that has so far been most extensively studied is the product diversification strategy. According to Alfred Chandler (1962), the largest companies in the United States began to adopt a product strategy of related diversification already as ...

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