Werde aktiv in unserer Community aus über 448.000 Gleichgesinnten!

Verabrede dich zum Casen über das Meeting-Board, nimm an Diskussionen in unserem Consulting Q&A teil und finde gleichgesinnte Case-Partner, um dich auszutauschen und gemeinsam zu üben!

Can you take a typical example about horizontal ,concentric and lateral products

2x2 Matrices and the BCG matrix
Neue Antwort am 4. Aug. 2021
4 Antworten
1,9 T. Views
Ngô fragte am 26. Dez. 2020

since I find horizontal and lateral quite similar

Übersicht der Antworten

Upvotes
  • Upvotes
  • Datum aufsteigend
  • Datum absteigend
Beste Antwort
Gaurav
Experte
Content Creator
bearbeitete eine Antwort am 26. Dez. 2020
Ex-Mckinsey|Certified Career Coach |Placed 500+ candidates at MBB & other consultancies

Hi Ngô!

Here are some typical examples of these product diversification strategies:

Concentric is the simplest, it's basically companies selling similar products in almost the same customer segment, for example, a company producing desktop computers getting into laptop business.

Horizontal means companies getting into a different product segment, but predominantly keeping the same or similar customer segments, for example, a computer company getting into tabs or anything connected to computing devices.

Lateral (conglomerate) is the toughest, this is where companies get into a completely unrelated product, for example, a computer company getting into producing cars.

Do you have any further questions?

GB

(editiert)

War diese Antwort hilfreich?
Muhammad Bashir Hafizu antwortete am 4. Aug. 2021

Honestly, I have never ever heard these terms used in either casing or the business/strategic consulting world. Much more important would be the concept vertical/horizontal integration of companies.

That being said, here are the examples:

Concentric: Desktop manufacturer selling laptops, mouses, keyboards to their existing desktop customers. (i.e. it's something my customers want AND something I should intrinsicly be good at producing)

Horizontal: Desktop manufacturer selling chairs to their existing desktop customers (i.e. it's something my customers want, BUT something I don't necessarily know how to produce)

Lateral/Conglomerate: Desktop manufacturer selling cars to non-current customers (i.e. it has nothing to do with my current customers AND it's not something I'd be naturally good at producing).

Quite obviously, Lateral/Conglomerate moves are pretty silly, risky, and capital-intensive.

War diese Antwort hilfreich?
15
Clara
Experte
Content Creator
antwortete am 27. Dez. 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

For consulting cases, it´s enaguh to know the differences between horizontal and vertical.

Cheers,

Clara

War diese Antwort hilfreich?
Ian
Experte
Content Creator
antwortete am 26. Dez. 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Ngo,

Honestly, I have never ever heard these terms used in either casing or the business/strategic consulting world. Much more important would be the concept vertical/horizontal integration of companies.

That being said, here are the examples:

Concentric: Desktop manufacturer selling laptops, mouses, keyboards to their existing desktop customers. (i.e. it's something my customers want AND something I should intrinsicly be good at producing)

Horizontal: Desktop manufacturer selling chairs to their existing desktop customers (i.e. it's something my customers want, BUT something I don't necessarily know how to produce)

Lateral/Conglomerate: Desktop manufacturer selling cars to non-current customers (i.e. it has nothing to do with my current customers AND it's not something I'd be naturally good at producing).

Quite obviously, Lateral/Conglomerate moves are pretty silly, risky, and capital-intensive.

War diese Antwort hilfreich?
Wie wahrscheinlich ist es, dass du uns einem Freund oder Kommilitonen empfiehlst?
0
1
2
3
4
5
6
7
8
9
10
0 = Nicht wahrscheinlich
10 = Sehr wahrscheinlich