What is the difference between a concentration growth strategy and a diversification growth strategy?

Question

Quizplus · Accepted Answer

A concentration growth strategy focuses on increasing market share within a specific industry or market through vertical integration (expanding into upstream or downstream activities) or horizontal integration (acquiring or merging with competitors). On the other hand, a diversification growth strategy involves expanding into new markets or industries through concentric diversification (entering a related market with similar products or technologies) or conglomerate diversification (entering an unrelated market). Therefore, D is the correct answer as it accurately differentiates between the two strategies. Strategic managers can then consider one or more specific sub-strategies, such as 'concentration' or 'diversification'; they might decide to concentrate their efforts on one product line or one industry, or diversify into other market segments or even different industries.

What Is the Difference Between a Concentration Growth Strategy and a Diversification