Vodafone and Idea were two telecommunication giants in India. Each strategy focuses on a specific method of diversification. Entertainment industry. Horizontal diversification is typically the diversification strategy with the least amount of risk involved, as you’re working mostly within familiar customer and market segments. Horizontal Diversification Strategy. Difference # Horizontal Diversification (Integration): 1. Here we are going to look at some of the recent real-life examples of horizontal integrations to get an idea about what motivations lead to this process and how have companies benefitted from it: Example #1 – Vodafone-Idea. Horizontal diversification Horizontal diversification involves providing new and unrelated products or services to existing consumers. That is, horizontal diversification involves investing in similar instruments. Horizontal integration examples range across industries and include Arcelor and Mittal, Disney and Pixar and Facebook and Instagram. Horizontal Diversification vs Conglomerate Diversification. ADVERTISEMENTS: This article will help you to differentiate between horizontal and vertical diversification of firms. The company has pursued a diversification strategy, which means purchasing other companies that enable it to bring new products into new markets while remaining true to Disney’s origins. This strategy takes place when an organization introduces a new and distinct product to the existing customers. Examples include investing in several technology companies or in different types of bonds. For example, a notebook manufacturer that enters the pen market is pursuing a horizontal diversification strategy. [1] The most common strategies include concentric, horizontal and conglomerate diversification. Examples: Horizontal diversification. For example, a ketchup manufacturer starts producing salsa, using its current production facilities. This is a more extreme sub-type of horizontal diversification. Film production houses also distribute movies through DTH networks. Concentric diversification strategies are rampant in the food production industry. The percentage of risk in horizontal diversification strategy is less as compared to the conglomerate diversification strategy because the organization already knows about its existing customers. An expected increase in market share. Nature: In horizontal diversification, two businesses, similar or dissimilar, join together. Horizontal diversification is when you hold different instances of the same asset class.In this form of portfolio diversification, you’re trying to reduce localised or industry sector specific risks.. A broad index-based ETF is a good example of horizontal diversification.. In horizontal diversification, however, you stay on the existing level of production, without trying to take over the role of vendors, suppliers, or distributors. ADVERTISEMENTS: 2. Horizontal diversification allow a firm to start exploring other zones in terms of product manufacturing. Examples of Horizontal Integration. Say you’re the CEO of the Dunder Mifflin Paper Company — it might make complete sense to … Companies Introduce into the production new products which are based on know-how, experience and technical-economic capabilities of the company. Horizontal diversification involves the extension of a production of products or service above and beyond the industry, in which the company operates. Today, 54% of Disney’s revenues—but only 32% of its profits—come from movies and parks. Diversification strategies allow a firm to expand its product lines and operate in several different economic markets. The organization takes over those organizations which manufacture the same/ similar product or marketing functions. 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