SURVIVAL STRATEGY IN RETAIL: THE ROLE OF BUSINESS DIVERSIFICATION IN PRIMORSKY KRAI

Business diversification is one of the strategic measures through which organizations seek to enhance their chances of survival and distribute risks in an uncertain managerial environment. In this study, the Kaplan-Meier survival analysis model was applied to assess the actual impact of business diversification on the survival of retail organizations in Primorsky Krai. For analytical purposes, retail organizations were classified into two groups based on whether they implemented business diversification. The results of the analysis revealed that the differences in survival rates between the two groups, depending on the presence of diversification, were statistically significant. The survival duration at the 50% survival rate was found to be 1,809 days for non-diversified organizations and 3,391 days for diversified organizations. According to the survival duration estimates, diversified retail organizations demonstrate significantly higher resilience compared to their non-diversified counterparts, indicating the positive influence of diversification on adaptation to changing external environmental conditions. The findings of this study highlight the necessity of implementing diversification strategies as a key factor for the sustainable development of retail organizations in Primorsky Krai. Furthermore, they provide a foundation for future empirical research aimed at classifying types and levels of diversification.