concentric (adjective, con-cen-tric, \ kənˈsentrɪk \) diversification (noun, di-ver-si-fi-ca-tion, \ dəˈvɜːrsɪfɪˈkeɪʃn \)
Definition: is a diversification type used by companies that plan to acquire or develop new products or services with the purpose of entering and conquering a new market (with the requirement being that the product is closely tied to the organization’s core activities or technology). Additionally, implementing such diversification allows a business to a) target new audiences and\or territories, b) enhance product development and the cooperation between different business units and c) increase its market share and overall profitability.
In a Sentence:
- In pursuing concentric diversification, our office supply firm found a ballpoint pen manufacturer. Now we have even further broadened the list of products we offer to our clients.
- Initially, Epic-Media only offered television and print advertising opportunities for its clients, but after the concentric diversification process was complete, they included online ads on their list of services.
Synonyms and related words: conglomerate diversification, diversification, product diversification, horizontal diversification
