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