KROGER

Diversification creates value when there is real synergy. In this chapter, chasing growth should not be about simply getting bigger as a company, it should be about using different methods to spread out your assets, workforce, and reputation to diversify. Kroger is a strong example of related diversification because its grocery stores, private labels, pharmacy, fuel, and e-commerce all rely on the same supply chain and data systems. Kroger creates the most value when it expands in ways that directly connect back to its core grocery strengths.