Table of Contents
- 1 Is horizontal integration the same as diversification?
- 2 What is the difference between diversification and integration?
- 3 What are the three types of diversification?
- 4 What is the difference between a concentric diversification strategy and a concentration strategy?
- 5 How is horizontal integration different from vertical integration?
- 6 What is horizontal diversification example?
- 7 Which is the best example of related diversification?
- 8 What is the difference between horizontal and vertical diversification?
- 9 What is the difference between horhorizontal integration and concentric diversification?
- 10 What is horhorizontal and vertical integration?
Is horizontal integration the same as diversification?
Horizontal integration or diversification involves the firm moving into operations at the same stage of production. Vertical integration is usually related to existing operations and would be considered concentric diversification.
What is the difference between diversification and integration?
While vertical integration involves a firm moving into a new part of a value chain that it is already within, diversification requires moving into an entirely new value chain. Many firms accomplish this through a merger or an acquisition, while others expand into new industries without the involvement of another firm.
What is concentric diversification?
a growth strategy in which a company seeks to grow and develop by adding new products to its existing product lines to attract new customers; also called convergent diversification.
What are the three types of diversification?
There are three types of diversification: concentric, horizontal, and conglomerate.
What is the difference between a concentric diversification strategy and a concentration strategy?
The basic difference between a concentric diversification and a concentration strategy is that a concentric diversification strategy involves expansion into a related, but distinct, area whereas concentration involves expansion of the current business.
What is horizontal diversification?
a growth strategy in which a company seeks to add to its existing lines new products that will appeal to its existing customers.
How is horizontal integration different from vertical integration?
Horizontal integration is an expansion strategy adopted by a company that involves the acquisition of another company in the same business line. Vertical integration refers to an expansion strategy where one company takes control over one or more stages in the production or distribution of a product.
What is horizontal diversification example?
Horizontal diversification involves providing new and unrelated products or services to existing consumers. For example, a notebook manufacturer that enters the pen market is pursuing a horizontal diversification strategy.
What is the example of horizontal diversification?
Related diversification occurs when a firm moves into a new industry that has important similarities with the firm’s existing industry or industries. Because films and television are both aspects of entertainment, Disney’s purchase of ABC is an example of related diversification.
What is the difference between horizontal and vertical diversification?
Horizontal integration is when a business grows by acquiring a similar company in their industry at the same point of the supply chain. Vertical integration is when a business expands by acquiring another company that operates before or after them in the supply chain.
What are some examples of horizontal integration?
Three examples of horizontal integration are the merger of Marriott and Starwood Hotels in 2016, the merger of Anheuser-Busch InBev and SABMiller in 2016, and the merger of The Walt Disney Company and 21st Century Fox in 2017.
What is the difference between horhorizontal integration and concentric diversification?
Horizontal integration is aimed at realizing synergies or economies of scope, whereas concentric diversification tries to reduce risks. A soft drink maker selling chips is doing the former, whereas if they enter into selling a substitute (such as a health drink) may be the latter.
From concentric diversification? Horizontal growth is the expanding of a firm’s activities into other geographic regions and/or by increasing the range of products and services offered to current markets. Vertical growth, in contrast, involves a firm’s taking over a function previously performed by a supplier or a distributor.
What is horhorizontal and vertical integration?
Horizontal integration is a grand strategy based on growth the acquisition of similar firms operating at the same stage of the production-marketing chain. (Pearce, p. 218) Vertical integration is the grand strategy based on the acquisition of firms that supply the acquiring firm with inputs or new customers for its outputs.
What is concentric diversification with example?
Add new products to the existing products in similar markets that will serve similar customers through the same distribution system. This is called the market related to concentric diversification. For example, when a company that sells good products expands to start selling kitchenware, it will supply to the same customers in the same markets.