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Vertical Merger vs Vertically integrated Diversification

Strategic Management

I quote from the book pg 4.10: "A coffee bean manufacturer may choose to merge with a coffee cafe" The above e.g. is from topic Vertically Integrated Diversification, but it talks about merger. Then again, a page or two later there is a topic called "Vertical Meger". How are these two (mentioned in title) different then?

Kumarjit Dey

CA Inter

★ 4K+

14-Nov-20 15:54

384

Answers (2)

Best Answer

ICAI has been inconsistent with the way book is compiled. Diversification also has two aspects. Ansoff Matrix - New product and new market General - Starting a new business is also called a diversification. You need to choose an option which fits the best and is specific. . For e.g. if there is a merger, you need to choose the one which indicates merger.