Pros and Cons of Conglomerate Integration Flashcards
1
Q
What is conglomerate integration?
A
when two firms from unrelated industries join together
2
Q
Pros of conglomerate integration
A
risk-bearing EOS (EOS in general)
increased brand awareness
knowledge transfers - dynamic efficiency
3
Q
Cons of conglomerate integration
A
DEOS
brand dilution
lack expertise