Distinguish Vertical Integration Concentric Diversification Conglomerate Diversification P Q34314814

Distinguish between vertical integration, concentricdiversification, and conglomerate diversification. Pleaseilaberate.

Expert Answer

Distinguish between Vertical Integration, conglomeratediversification and concentric diversification.

Concentric Diversification:
This is a type of diversification followed by the businessorganisations where the firm prefers to acquire another firm whichis in some way or the other rekated to its core business in orderto divetsify the business.
The firm thus aquired is similar to the business in terms ofmarket, disyribution channel , products produced , line of businessor technology used. This type of diversification is considered lessrisky than the rest as it involves low failure rates , lessinnovation and the acquiring firm has already all