Horizontal & Vertical Growth and Concentric Diversification

Discipline: Business Studies

Type of Paper: Coursework

Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 2 Words: 550


How does horizontal growth differ from vertical growth as a corporate strategy? From concentric diversification?

Horizontal growth is the expanding of a firm's activities into other geographic regions and/or by increasing the range of products and services offered to current markets. Vertical growth, in contrast, involves a firm's taking over a function previously performed by a supplier or a distributor. Concentric diversification, in contrast, is the addition of products or divisions, which are related to the corporation's main business but are added because of the attractiveness of other industries rather than because they support the activities of the current product lines.

Please discuss these three strategies with some relevant examples.