Advantages and Disadvantages of Vertical and Horizontal Diversification Strategies

The purpose of this paper is to identify the features, advantages and disadvantages of the organization's strategy for vertical and horizontal diversification, using the example of RosElectronics. The solution of this goal required examining the theoretical foundations of diversification strategies, analyzing the essence, advantages and disadvantages of vertical and horizontal diversification, considering approaches to assessing the level of diversification and its effectiveness. In the course of the work, recommendations were made to increase the effectiveness of the diversification strategy in the organization. During the research, such methods as observation, analysis, comparison, as well as comparative legal and historical methods were used. Information base of the research was made by the legislative and normative acts in the field of entrepreneurship operating in Russia, the official federal and regional statistics, as well as reports and other materials of RosElectronics.