Conglomerate Diversification - Diversification strategies

Corporate Level Strategies

 Prepared By
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

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Diversification strategies
 Diversification strategies
• Firms using diversification
strategies enter entirely new
industries. While vertical
integration involves a firm
moving into a new part of a
value chain that it is already is
within, diversification
requires moving into new
value chains.
 Examples of Diversification strategies
• Avon's move to market
jewellery through its
door-to-door sales force
involved marketing new
products through
existing channels of
distribution.
 Conglomerate Diversification
• When an organization adopts a
strategy which requires taking of
those activities which are
unrelated to the existing
businesses definition of one or
more of its businesses either in
terms of their respective customer
groups, customer functions or
alternative technologies, it is called
conglomerate diversification.
Examples of Conglomerate Diversification
• Example of Indian company
which have adopted apart
of growth and expansion
through conglomerate
diversification the classic
examples is of ITC, a
cigarette company
diversifying into the hotel
industry.