![]() ![]() ITC, a tobacco-to-hotels conglomerate, is one of the few organizations that successfully diversified far beyond its main sector. There are many conglomerate diversification examples, which make it easy to understand the conglomerate diversification meaning. ![]() Further, finding an appealing investment opportunity necessitates an organization’s consideration of different types of businesses. With conglomerate diversification, organizations often aim to achieve marketing or production synergy.Ī prominent reason for diversifying into a new line of business is limited opportunities in the existing line of business. The fundamental goal of conglomerate diversification is to increase the acquiring organization’s profitability. When an organization diversifies into sectors that are unrelated to its existing line of business, it’s known as conglomerate diversification. Growth: The Ultimate Aim of an Organization.Disadvantages of conglomerate diversification.Advantages And Disadvantages Of Conglomerate Diversification.There’s a lot of research involved in adding a new line of business. If a large organization ventures into a new line of business, it can be called conglomerate diversification. Have you seen a fruit seller start selling daily consumables and dairy products? This is a perfect example of a business diversifying into other fields.
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