Answer: Concentric Diversification.
Explanation:
The types of diversification are classified into:
• Horizontal Diversification.
Tries to sell new products in markets that are related and in which the company already operates. The format is different, but the goal is the same. An example of this are the hamburgers that add toys to their packs. It is a product not related to food, but at the same time attracts a group of customers more effectively. In this case this group of clients are children.
• Vertical Diversification.
The company that develops a strategy of vertical diversification, bets on the elaboration of products that it previously acquired in the market. For example, it is when a commercial distribution company expands its business to manufacturing activities. Depending on the type of integration you can talk about backward integration (the retailer integrates with the manufacturer or wholesaler). Forward integration consists of the integration of the wholesaler with the retailer.
• Concentric Diversification.
Make new products but within the same line of products already affected. A clear example of concentric diversification is a beverage company when it brings a new flavor to the market.
• Conglomerate diversification.
The conglomerate diversification strategies deal with the manufacture of new products, but which are not related to those that the company had been developing so far. This is typical of large business groups.
