As long as a single-business company can achieve profitable growth opportunities in its present industry, a. it needs to avoid putting all of its "eggs" in one industry basket. b. it will face diminishing market opportunities and stagnating sales in its principal business. c. its opportunities are limited to leverage existing competencies and capabilities by expanding into businesses where these same resources are key success factors and valuable competitive assets. d. it has diminished prospects to lower costs by entering closely related businesses and/or an opportunity to transfer a powerful and well-respected brand name to the products of other businesses and thereby increase the sales and profits of these newly entered businesses. e. there is no urgency to pursue a diversification strategy.
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