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

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

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Answer #1

HORIZONTAL GROWTH IS THE INCREASE OF ACTIVITIES OF FIRM IN OTHER GEOGRAPHICAL AREAS. IT CAN ALSO BE AN INCREASE IN THE RANGE OF SERVICES/PRODUCTS THAT THE COMPANY OFFERS TO CURRENT MARKET.

ON THE OTHER HAND, VERTICAL GROWTH IS WHEN A FIRM TAKES OVER THE FUNCTIONS PERFORMED PREVIOUSLY BY A DISTRIBUTOR/SUPPLIER.

WHILE CONCENTRIC DIVERSIFICATION MEANS ADDING MORE PRODUCTS / DIVISION DUE TO OTHER INDUSTRY'S ATTRACTIVENESS INSTEAD OF SUPPORTING THE CURRENT PRODUCT LINES.

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