conglomerate (noun, con-glom-er-ate, \ kənˈɡlɑːmərət \) diversification (noun, di-ver-si-fi-ca-tion, \ daɪˌvɜːrsɪfɪˈkeɪʃn \)
Definition: is a diversification strategy where a company enters a completely new market that is either mostly or entirely unconnected to the organization’s core products, services or technology. Such a process takes place when a company either purchases a business operating in an unfamiliar market or merges with another organization. Strategies of this kind are implemented when a company considers expanding into a new industry to be an extremely profitable business growth decision.
In a Sentence:
- Since the very establishment of Wilkey’s Paradise, they were only selling sweets, but now they’re thinking about performing conglomerate diversification to conquer the coffee industry as well.
- With the recent conglomerate diversification done by Plum Inc., the question on everybody’s mind is how they can combine selling smartphones and furniture successfully?
- Once we finalize the deal with E-Cig Pioneers, our conglomerate diversification will be complete.
Synonyms and related words: company, diversification, corporate strategy, horizontal diversification, concentric diversification
