🔷 Integration Strategy
Vertical or horizontal integration to strengthen control.
| Type | Description | Example |
|---|---|---|
| Backward Integration | Acquiring suppliers | Maruti buying part suppliers |
| Forward Integration | Acquiring distributors/customers | Amul owning retail outlets |
| Horizontal Integration | Acquiring competitors |
Facebook acquiring WhatsApp |
🔷 Diversification Strategy
Focused on adding new businesses.
| Type | Description | Example |
|---|---|---|
| Related Diversification |
Entering new businesses related to existing operations. Shares technology, products, markets, or channels. Uses existing strengths to create synergy. |
Apple moving into smartwatches |
| Unrelated Diversification |
Entering businesses with no connection to current lines. No common technology, product, or market. Aims to reduce risk by spreading investments. |
ITC moving from cigarettes to hotels |
| Concentric |
A focused related diversification. New products complement existing ones and target current customers. Uses similar technology or processes. |
Maruti entering electric cars
|
Another example of concentric diversification: A company in the sewing machine business diversifies into kitchenware and household appliances and sells these items through a chain of retail stores to family consumers.