The impact of diversification in the operations strategy of capital goods companies

Abstract

Considering that the analysis of the specific areas technology and market is reported in the literature as the main elements in the decision making process of diversification and the operations strategy, these have to reconcile the technological base with the market demand. This paper examines the impact of diversification in operations strategy in 3 multinational leading capital goods companies. The main contribution of this study concerns the understanding that different processes of diversification can help to expand the share of the company in the same market with new products based on the same technology and can help the company to enter in a new market with new products, based on different technologies. Therefore, the process of diversification of firms should be analyzed from the perspective of a growth strategy based on knowledge, so that the management of this resource should occur in conditions of maximum efficiency.