Differentiate between Concentric diversification and Conglomerate diversification.

The following are the principal points of distinction between concentric diversification and conglomerate diversification: (i) Concentric diversification occurs when a firm adds related products or markets. On the other hand, conglomerate diversification occurs when a firm diversifies into areas that are unrelated to its current line of business. (ii) In concentric diversification , the new business is linked to the existing businesses through process, technology or marketing. In conglomerate diversification , no such linkages exist; the new business/product is disjointed from the existing businesses/ products. (iii) The most common reasons for pursuing concentric diversification are that opportunities in a firm's existing line of business are available. However, common reasons for pursuing a conglomerate growth strategy are that opportunities in a firm's current line of business are limited or opportunities outside are highly lucrative.