Conglomerate diversification examples?


Conglomerate diversification is a marketing strategy used by companies to diversify their product and customer base. This diversification is sometimes carried out by buying other companies which have products that the bigger company does not have, therefore increasing the bigger company's product and customer base. An example of conglomerate diversification is if an electronics company buys out an appliance company. Another example would be if a television company were to buy out a telephone company.

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The advantages and disadvantages of conglomerate diversification are as follows: Advantages of conglomerate diversification. a. Risk spreading ? entering new products into new markets
1. ensure that the businesses are vertically aligned in the supply chain. 2. the businesses are part of the eco-system of the main product/service 3. the existing resources being
Diversification is a form of growth strategy and
Frito Lay isn't a conglomerate. General Electric is a good example, or Textron, United Technologies, Tyco International. Frito Lay is a food processing company. Even though they have
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Concentric Diversification is a business strategy. It involves adding new services to old business practices. This allows the business to do these old business ...
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