Concentric Diversification

SLIDE 1 WHAT IS CONCENTRIC DIVERSIFICATION?? -Concentric diversification focuses on creating a portfolio of related businesses. -The portfolio is usually developed by acquisition quite than by inborn new business creation -Adding new only when related products or services - there is a technological analogy between the industries, which means that the firm is able to leverage its technological know-how to gain some advantage - It also seems to increase its market make out to launch a new product that helps the particular troupe to earn profit (Advantages) ? 1Enable a firm to attain synergy by exchange of resources and skills 2)To avail economies of scale and tax Benefits SLIDE 2 Concentric diversification is of three types: ??MARKETING RELATED DIVERSIFICATION. ?? engine room RELATED DIVERSIFICATION. ??MARKETING AND TECHNOLOGY RELATED DIVERSIFICATION EXAMPLES -Essar Group:- shipping, marine construction, crude support services, and iron ,steel. - Shriram Fibers Ltd.:- nylon industrial yarn, synthetic industrial fabrics, nylon tyre cords, fluorochemicals, fluorocarbon refrigerant gases, ball and needle bearings - The addition of tomato ketchup and do to the existing Maggi brand processed items of Food Specialities Ltd.

Value reach is an analytical tool like SWOT to conduct an internal analysis while formulating a strategy. Resource Based take c atomic number 18 is another internal analytical tool. (RBV) strategy - value chain analysis Introduction Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. important work by Michael Porter suggested that the activities of a business could be grouped under two headings: (1) Primary Activities - those that are now concerned with creating and delivering a product (e.g. component assembly); and (2) Support Activities, which whilst they are not directly involved in production, may increase... If you unavoidableness to get a full essay, order it on our website: Orderessay

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