Related diversification involves staying in the same industry a development beyond the present product or market but still within the broad confines of the industry in which it operates. involves diversifying into areas which have a link with the organisation’s present markets and products. For example, a biscuit manufacturer might diversify into cereals – both products are within the food industry. Related diversification is a development beyond the present product or market but still within the broad confines of the industry in which it operates. Therefore, the new markets and products share some common features with those of existing products. As a result, it can be built on assets, skills and competences that the company already possesses. It can take various forms, for example: new products or extension of product lines within current markets (product development in terms of the matrix); moving into suppliers’ of customers’ business to secure supplies or to secure outlets (vertical integration); moving into new markets with the same products (market development); introducing products closely related to existing products but in new markets (eg product variation for the export market). Related diversification also provides opportunities for the organisation to benefit from synergy and, therefore, can be renamed as synergistic diversification. This is discussed further below.