Continuing our discussion of corporate strategies, let us look at diversification strategies. Corporate diversification strategies are actions taken by a firm to increase or expand operations under current business practices. The diversification strategies allow the business to enter different markets all in attempts to continue to gain competitive advantages.
Within diversification strategies, a business can employ a limited corporate diversification strategy whereby the business uses one of two strategies: single-business or dominant-business.
Interestingly enough, Medtronic has products that fall into both categories of diversification strategies. The cardiac and vascular sector of medical devices is Medtronic's bread and butter. On the other hand, Medtronic is a dominant player in the minimally invasive surgical sector and the restorative therapies sector. Now, just because Medtronic is a dominant player in any specific sector does not mean Medtronic does not have much competition. In fact, Medtronic must continue its diversification strategies as the healthcare sector is ever evolving to better meet customer needs. The continued diversification can be achieved through innovation, and creating a deeper patent portfolio.
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