Diversification ought to be considered at single-business companies when
(a) company has run out of ways to achieve a distinctive competence in its present business.
(b) industry conditions take a turn for the worse and are expected to be long-lasting, thus undermining prospects for ongoing gains in revenues and profits.
(c) a company lacks sustainable competitive advantage in its present business.
(d) a company's profits are being squeezed and it needs to increase its net profit margins and return on investment.
(e) a company has more resource/capability weaknesses and competitive deficiencies than it has resource/capability strengths and competitive assets.