crumas2 on 21 June 2008
It can be (and often is) argued both ways. Having a diverse product line can help a company weather bad times in a single product line (think what would happen to Nintendo's financials if the video-game business went into a real slump).
On the other hand, companies that stray outside their "core" businesses often waste money and resources trying to break into new markets, and then eventually back out again with a big deficit on the books. This isn't always the case... Apple seems to be doing well getting into new markets right now.
So take your pick... it can be good or bad, depending on market conditions and the company's ability to execute.
