Jynklo Ltd. is an established online children gaming company in Japan. They are performing good in the gaming industry. The management of Jynklo…

Currently Jynklo Ltd. is performing in the children's gaming industry. But now its management has decided to expand their business by starting a premium sports drink named JynX for athletes. As there are no links to both products with respect to customer groups, customer functions, or the technologies being used, Jynklo Ltd. have opted Conglomerate diversification . Jynklo Ltd. diversifies in a business that is not related to their existing line of products and can be termed as conglomerate diversification. In conglomerate diversification, the new businesses/ products are disjointed from the existing businesses/products in every way; it is an unrelated diversification. In process/technology/ function, there is no connection between the new products and the existing ones. Conglomerate diversification has no common threat at all with the firm's present position.