Unrelated diversification is where a business enters a completely different industry growth in products and markets that are completely new; developments beyond the existing industry into products and markets that have little relation to existing markets and products. In general, the more unrelated the diversification, the higher the cost involved and the greater the risk. where a business enters a completely different industry. For example, a biscuit manufacturer diversifying into the financial services sector. Unrelated diversification is growth in products and markets that are completely new; developments beyond the existing industry into products and markets that have little relation to existing markets and products. As unrelated diversification involves little commonality with existing products and markets, it involves the acquisition of new skills, new types of assets and new supply chain links. It represents high risk and provides limited opportunities for synergy (considered later below).