Examples of conglomerate diversification include General Electric, Virgin Group Ltd. and The Walt Disney Company. Initially a lighting business, General Electric diversified into medical devices and household appliances. Virgin expanded from a record label to transport and healthcare, while Disney’s operations range from film studios to entertainment parks.
Conglomerate diversification is a growth strategy that involves expanding a company's business into an area, or areas, totally unrelated to its core business. The main advantage of this strategy is the diversification of risk over different industries, thereby making the company less dependent on one sector. Diversification also opens the core company to new markets and new revenue sources.