Assessment of Product Diversification Strategies on the Financial Performance of Nigerian Conglomerates

Business Administration — 2025, Undergraduate

This study assessed the effect of product diversification strategies on the financial performance of Nigerian conglomerates. Financial statements of selected companies were analysed together with questionnaire data from senior marketing executives. Data were analysed using ratio analysis and regression techniques. The findings revealed that related and unrelated diversification produced mixed effects on profitability, with related diversification contributing more to revenue stability and cost synergies. Excessive diversification without adequate capacity was, however, associated with declining returns. The study recommends that conglomerates pursue diversification only where managerial and financial resources are sufficient to sustain new product lines.

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