Compare and contrast the diversification of two case firms : Pixar and Heineken

ID: 364981 • Letter: C

Question

Compare and contrast the diversification of two case firms :Pixar and Heineken. Identify the different industries in which each firm operates and discuss whether each firm is highly diversified. If the firm is highly diversified, discuss whether the firm pursues related or unrelated diversification strategy. If the firm is not highly diversified, propose a new diversification strategy for the firm by identifying the industries the firm should enter and discussing whether it should pursue a related or unrelated diversification strategy.

Explanation / Answer

Not highly diversified.

- only Walt Disney has acquired Pixar

It is a highly diversified organization:

- Product diversification : here, wine, spirits, Perry etc.

- Geographic diversification : North America, Europe, Asia ect.

- Demography : Men & women

Related diversification

Both Disney and Paxir belong to same functioning and hence related

Related diversification strategy:

It is a strategy which means the process and policies are same across for all the diversified products.

In Heineken, the skills required to handle the business are same

Since it is not highly diversified below would be the proposal:

- Need to build strategies on related diversification

- Animation industry is growing and since the company already has all skills in place they should go for related diversification

PIXAR HEINEKEN An animation studio a beer company