concentric diversification diversification strategies - corporate level strategies - strategic...
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Manu Melwin JoyAssistant Professor
Ilahia School of Management Studies
Kerala, India.Phone – 9744551114
Mail – [email protected]
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.
Concentric Diversification• When an organization takes up
an activity in such a manner
that is related to the existing
business definition of one or
more of firms businesses, either
in terms of customer groups,
customer’s functions or
alternative technologies, it is
called concentric diversification.
Example of Concentric Diversification
• The addition of tomato
ketchup and sauce to the
existing "Maggi" brand
processed items of Food
Specialities Ltd. is an
example of technological-
related concentric
diversification