Diversification strategies and company performance

The purpose of this study was to find out the impact of diversification on the performance of industrial enterprises in the city of Goma a city where some industrial enterprises are already emerging. The city has some unique characteristics compared to other cities in the Democratic Republic of Congo including the presence of some resources necessary for the development of the industrial sector. Thus these companies implement strategies to survive the prevailing competition and for their development. In this work we sought to discover the impact of these strategies among others the horizontal concentric vertical and conglomerate diversification on the financial performance of these companies. In the end it was found after analysis that horizontal vertical and conglomerate diversification positively explain the performance of industrial firms in Goma while concentric diversification explains this performance negatively (the influence of these variables being not significant).