What is the example of horizontal diversification?

What is the example of horizontal diversification?

Horizontal Diversification refers to the development of new products that are somewhat related to your original lines. For example, while your original product was plant pots, you are now selling seeds for many varieties of herbs and flowers.

What company uses horizontal diversification?

One of the most famous examples of horizontal diversification is Reliance Industries Limited (RIL). Earlier in 1960-80, the organization was a megabrand for textile and petrochemical. However, in 1995-96, they entered the telecom business, which was completely different from their previous venture.

Why is horizontal diversification important?

Benefits of horizontal diversification Because horizontal diversification often involves introducing new products to existing lines in the interest in better serving current customers, it can result in product lines being expanded and becoming more complete and varied.

Which is a good example of horizontal integration?

Facebook and Instagram. One of the most definitive examples of horizontal integration was the acquisition of Instagram by Facebook (now Meta) in 2012 for a reported $1 billion. 1 Both companies operated in the same industry (social media) and shared similar production stages in their photo-sharing services.

What is vertical and horizontal diversification?

In horizontal diversification, a firm adds new products. While, in vertical diversification, a firm adds the elements of the supply chain, that is, the supplier, transporter, etc.

Is Coca Cola an example of horizontal integration?

Horizontal Integration Example : Coca-Cola Acquiring Juice Brands. As part of their Horizontal Integration strategy, Coca-Cola acquired del Valle in 2007. This was one of the main Mexican juice companies, with the objective of expanding its beverage portfolio mainly in Latin America.

What are some examples of horizontal integration?

Horizontal integration is where a business joins with another at the same stage of the supply chain. In other words, two businesses that are similar, become one company. For instance, a merger between Nike and Adidas would be an example of horizontal integration.

What is horizontal diversification?

a growth strategy in which a company seeks to add to its existing lines new products that will appeal to its existing customers.

What is the difference between horizontal diversification and concentric diversification?

The concentric strategy is used when a firm wants to increase its products portfolio to include like products produced within the same company, the horizontal strategy is used when the company wants to produce new products in a similar market, and the conglomerate diversification strategy is used when a company starts …

What is the importance of horizontal strategy?

Undergoing horizontal integration can benefit companies and typically takes place when they are competing in the same industry. The advantages include increasing market share, reducing competition, and creating economies of scale.

What is horizontal integration in marketing?

Horizontal integration is a business strategy in which one company acquires or merges with another that operates at the same level in an industry. Horizontal integrations help companies grow in size and revenue, expand into new markets, diversify product offerings, and reduce competition.

Is Facebook vertically or horizontally integrated?

Facebook and Instagram One of the most definitive examples of horizontal integration was the acquisition of Instagram by Facebook (now Meta) in 2012 for a reported $1 billion. 1 Both companies operated in the same industry (social media) and shared similar production stages in their photo-sharing services.

What is the difference between horizontal and vertical diversification?

Horizontal integration involves acquiring or merging with competitors while vertical integration occurs when a firm expands into another production stage like acquiring a supplier or distributor. As such, vertical integration is the process of acquiring business operations within the same production vertical.

What is horizontal market integration?

What is concentric diversification strategy?

a growth strategy in which a company seeks to grow and develop by adding new products to its existing product lines to attract new customers; also called convergent diversification.

What is the advantages of horizontal system?

The advantages include increasing market share, reducing competition, and creating economies of scale. Disadvantages include regulatory scrutiny, less flexibility, and the potential to destroy value rather than create it.