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Why not horizontally integrated

Hello sir, in question 7 you have marked the answer as concentric , but why not horizontally integrated ? To be horizontally integrated is it important to acquire other business in the same line..?

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Rajath Tumma

Rajath Tumma

CA Inter

2K+

13-Mar-20 19:02

22

Answers (1)

Concentric diversification occurs when the diversification is in some way related to, but clearly differentiated from, the organization's current business. Horizontal integration is the process of a company increasing production of goods or services at the same part of the supply chain Hence as the leather company is now manufacturing bags also..bags are clearly differentiated from shoes


ruchi lahoti

ruchi lahoti

Moderator

07-Apr-20 10:01