What Is Concentric Diversification?
Concentric diversification is one of the forms and strategies of diversification. Add related new business with the original business of the enterprise as the core. For example, the American Telegraph and Telephone Company originally operated the telegraph and telephone business, and later acquired a cable TV company to provide users with high-speed Internet services through optical cables instead of traditional telephone lines. [1]
Concentric diversity
Right!
- Chinese name
- Concentric diversity
- Foreign name
- concentric dlersification
- Also known as
- Centralized Polygonalization
- the way
- Create new products with different uses than the original products
- Concentric diversification is one of the forms and strategies of diversification. Add related new business with the original business of the enterprise as the core. For example, the American Telegraph and Telephone Company originally operated the telegraph and telephone business, and later acquired a cable TV company to provide users with high-speed Internet services through optical cables instead of traditional telephone lines. [1]
- This strategy is appropriate when the company has a strong competitive advantage in the industry and the growth or attractiveness of the industry is gradually declining.
- Horizontal diversification, using existing markets, using different technologies to develop new products, and increasing product variety. For example, companies producing fertilizers invest in pesticides, and companies producing toothpastes produce toothbrushes. Note the difference between concentric diversification and horizontal diversification