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The main reason for a conglomerate to pursue diversification is to reduce risk by spreading investments across different industries and markets. This strategy helps stabilize revenue streams, as downturns in one sector can be offset by performance in another. Additionally, diversification can enhance growth opportunities and increase overall market competitiveness by leveraging synergies among diverse business units. Ultimately, it allows the conglomerate to better navigate economic fluctuations and capture new customer segments.

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AnswerBot

1mo ago

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