Chapter 11- Diversification Strategies

According to the book there are many types of strategies to diversify. All these strategies mention in the book fall into three categories: limited, related, and unrelated diversification. Netflix would fall in the limited diversification as they have 70% or greater of their earnings coming from a single business. In Netflix case this means that their business is all within in the streaming media industry. There is little in the way for diversification except the strategies they have embarked in the past few years. The first one is producing their own content. The second one is making alliances with Internet providers to improve the quality of their streaming. And a third being, licensing agreements with major studios/producers. Netflix is always trying to keep it’s market leading subscriber based happy by finding things that will keep them loyal and happy.