Understanding 'Diversification'

A Ltd is presently manufacturing refrigerators. Case 1) A Ltd has acquired B Ltd which manufactures products belonging to same industry like refrigerators, air conditioners and chimneys. Case 2) A Ltd decides to manufacture another line of product in its current Industry i.e. HVAC. Say it has started to manufacture Air Conditioners. Case 3) A Ltd decides to manufacture products in a Luxury industry. Say it has started to manufacture expensive clothes, watches. Case 4) A Ltd has acquired C Ltd, which distributes the refrigerators to wholesalers and retailers. Case 5) A Ltd has acquired D Ltd, which supplies A Ltd necessary materials it needs to manufacture refrigerators. [All the above cases are independent.] Case 1 Horizontal Integrated Case 2 Concentric Case 3 Conglomerate Case 4 Vertically Integrated - Forward Case 5 Vertically integrated - Backward Am I right or wrong? Please comment.

Kumarjit Dey

Kumarjit Dey

CA Inter


21-Nov-20 17:22


Answers (1)

Best Answer


Suraj Lakhotia

Suraj Lakhotia


21-Nov-20 19:35