Conglomerate Diversification

 

When a firm diversifies into business, which is not related to its existing business both in terms of marketing, and technology it is called conglomerate diversification. Several Indian companies have adopted this strategy. Reliance, Sahara, DCM, Essar group, ITC, Godrej, HMT are examples of conglomerate diversification.

Advertisement

 

Conglomerate diversification strategy is suitable for the following purposes:

 

(I) To grow faster than the growth realized through expansion;

(ii) To avail of potential opportunities for profitable investment;

(iii) To achieve competitive edge and greater stability;

(iv) To make better use of cash surplus of present products or service;

(v) To allocate the risks.

Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
126 Comments

Leave a reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account