8.1 Introduction

The preceding chapters focused on generic business-level, also referred to as generic competitive strategy: how firms compete head-to-head on products and services they offer. The intent is to develop strategies that provide a competitive advantage, so that buyers will purchase what a business has to offer instead of purchasing from a competitor. However, there are three types of strategy: business-level, corporate-level, and international strategy.

In this chapter, the focus is on corporate-level strategy. Corporate-level strategy is a paradigm shift from business-level strategy. It asks: what businesses should the firm be in, and how can being in those businesses create synergy and improve performance? Diversification is the key in corporate strategy. There are several ways that a corporate diversification strategy can be implemented that will be examined here. The third and final type of strategy following business-level and corporate-level strategies is international strategy, which will be discussed in the next chapter.