Concentric Diversification
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Conglomerate Diversification
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It is that type of diversification in which a firm acquire related firm.
In concentric diversification, acquired firm is related with acquiring firm in terms of market, product or technology.
Less risky
E.g. It will be concentric diversification if a telecom company acquire Net Provider Company.
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It is that type of diversification in which a firm acquire totally unrelated firm.
In conglomerate diversification, acquired firm is not related with acquiring firm in terms of market, product or technology.
More risky
E.g. It will be conglomerate diversification if a telecom company acquire Petrol Pump.
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