since I find horizontal and lateral quite similar
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Can you take a typical example about horizontal ,concentric and lateral products
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Hi Ngô!
Here are some typical examples of these product diversification strategies:
Concentric is the simplest, it's basically companies selling similar products in almost the same customer segment, for example, a company producing desktop computers getting into laptop business.
Horizontal means companies getting into a different product segment, but predominantly keeping the same or similar customer segments, for example, a computer company getting into tabs or anything connected to computing devices.
Lateral (conglomerate) is the toughest, this is where companies get into a completely unrelated product, for example, a computer company getting into producing cars.
Do you have any further questions?
GB
(edited)
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Honestly, I have never ever heard these terms used in either casing or the business/strategic consulting world. Much more important would be the concept vertical/horizontal integration of companies.
That being said, here are the examples:
Concentric: Desktop manufacturer selling laptops, mouses, keyboards to their existing desktop customers. (i.e. it's something my customers want AND something I should intrinsicly be good at producing)
Horizontal: Desktop manufacturer selling chairs to their existing desktop customers (i.e. it's something my customers want, BUT something I don't necessarily know how to produce)
Lateral/Conglomerate: Desktop manufacturer selling cars to non-current customers (i.e. it has nothing to do with my current customers AND it's not something I'd be naturally good at producing).
Quite obviously, Lateral/Conglomerate moves are pretty silly, risky, and capital-intensive.
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Hello!
For consulting cases, it´s enaguh to know the differences between horizontal and vertical.
Cheers,
Clara
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Hi Ngo,
Honestly, I have never ever heard these terms used in either casing or the business/strategic consulting world. Much more important would be the concept vertical/horizontal integration of companies.
That being said, here are the examples:
Concentric: Desktop manufacturer selling laptops, mouses, keyboards to their existing desktop customers. (i.e. it's something my customers want AND something I should intrinsicly be good at producing)
Horizontal: Desktop manufacturer selling chairs to their existing desktop customers (i.e. it's something my customers want, BUT something I don't necessarily know how to produce)
Lateral/Conglomerate: Desktop manufacturer selling cars to non-current customers (i.e. it has nothing to do with my current customers AND it's not something I'd be naturally good at producing).
Quite obviously, Lateral/Conglomerate moves are pretty silly, risky, and capital-intensive.
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