What is unrelated diversification strategy with example?
There are three types of diversification: Related Diversification —Diversifying into business lines in the same industry; Volkswagen acquiring Audi is an example. Unrelated Diversification —Diversifying into new industries, such as Amazon entering the grocery store business with its purchase of Whole Foods.
What type of diversification do you believe that Tata represents?
An example of conglomerate diversification would be Tata Group, which was founded in 1868 and diversified from its humble beginnings as a hotel company into a global multinational encompassing 100 individual companies.
Is Tata a diversified company?
The Tata group is among the largest diversified business groups in India. The group generated about USD100 billion in revenues in 2011-12 from 90 companies operating in diverse businesses in seven broad industry categories.
What is the best example of unrelated diversification?
This is a good example of unrelated diversification, which occurs when a firm enters an industry that lacks any important similarities with the firm’s existing industry or industries. Luckily for Coca-Cola, its investment paid off—Columbia was sold to Sony for $3.4 billion just seven years later.
Why is Tata so successful?
In 1870 with INR 21,000 capital, Jamsetji Tata founded an exchanging organization. He purchased a bankrupt oil plant at Chinchpokli and transformed it into a cotton plant under the name Alexandra Mill which he sold for a profit after 2 years. In 1874, he set up another cotton factory at Nagpur named Empress Mill.
How did the Tata Group diversify its business?
Adding related or similar product/service lines to an existing core business Titan Eye+ frames, lenses, contact lenses, sunglasses, international brands, and optical services Adding new business units producing new products/services separate from the existing core business
Which is a JV between Tata Group and American Insurance Group?
Insurance Industry – Tata AIG, a JV between the Tata Group and American Insurance Group (AIG) marks re-entry into insurance Adding related or similar product/service lines to an existing core business Titan Eye+ frames, lenses, contact lenses, sunglasses, international brands, and optical services
When did Tata Group acquire Littlewoods retail chain?
Tata acquired UK-based Littlewoods retail chain in 1997 to form Trent Ltd. Consumer Goods Industry – Tata Oil Mills Company established to make soaps, detergents, & cooking oils. Retail – Croma, multi-brand outlets for consumer electronics and durable products established