Answer to Question #192872 in Microeconomics for Eunice

Question

If a wine company integrates with a grape farm,can it be conglomerate expansion?As not all wine made from grapes.

Answer 1

Answer.

Yes, it can be a conglomerate expansion. Merging involves businesses that might not be related to each other. In this case, if the wine is not produced from grapes it then fits into a conglomerate expansion. The reason for this is because they will deal with different market or customer.The company can diversify its market and give it a chance to expand further.