Bifurcation – Definition

Cite this article as:"Bifurcation – Definition," in The Business Professor, updated December 4, 2019, last accessed December 4, 2020,

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Bifurcation Definition

Bifurcation is a process of dividing something into two independent branches or separate units. This term can be used in relation to diverse concepts and disciplines. For instance, bifurcation can occur in the context of a family, finance, organization, fashion, building, and many others.

When a larger whole or entity is split into two smaller divisions or units, bifurcation has occurred. Bifurcation comes with a significant change in the topology or structure of the larger entity that was split. Bifurcation can come with the restructuring of an organization, in this case, a large organization is split into two distinct companies for the purpose of expansion.

A Little More on What is Bifurcation

As used in different contexts and fields of study, there are some core terms associated with bifurcation, these are; splitting, dividing, breaking, separating and disjointing. Regardless of how they are used, the act of dividing a whole entity into two smaller parts or divisions is called bifurcation. When used in finance, bifurcation is a process of splitting a firm into smaller divisions, this can be for tax benefits or other reasons.

In the context of the market, a bifurcation is an act of evaluating the conditions of the market with the aim of assessing the movement of diverse market areas or segments.

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