Conglomerate in India is one of the exciting business models to follow and flourish. The companies with this business model are seeing blistering growth in their annual revenue figures, and are entering businesses that are completely unrelated to what their parent companies are into. Sounds weird, but this is how conglomerate model works.
Large returns, large risk -
Conglomerate in India business model believes in bold moves – such as Mergers & Acquisitions, Joint Ventures, Technology Partnerships, etc - which are meant for large returns. But, the same moves also carry large risks for the business. When you enter a completely strange land, you often stumble, and are more likely to get into losses.
But, if you look at the big picture, conglomerate model is doing pretty well for many businesses, especially in Asian markets. In fact, a large number of major players in the market are conglomerates.
Outlook and implications –
Given the rapidly changing business climate in much of Asia, conglomerate isn't a business model for all. It can't be.
But, there is one thing that can't be ruled out: conglomerates are ruling the market, and this trend is not likely to fade away in the coming years. Only time will tell how long this model remains in force and delivers.
Large returns, large risk -
Conglomerate in India business model believes in bold moves – such as Mergers & Acquisitions, Joint Ventures, Technology Partnerships, etc - which are meant for large returns. But, the same moves also carry large risks for the business. When you enter a completely strange land, you often stumble, and are more likely to get into losses.
But, if you look at the big picture, conglomerate model is doing pretty well for many businesses, especially in Asian markets. In fact, a large number of major players in the market are conglomerates.
Outlook and implications –
Given the rapidly changing business climate in much of Asia, conglomerate isn't a business model for all. It can't be.
But, there is one thing that can't be ruled out: conglomerates are ruling the market, and this trend is not likely to fade away in the coming years. Only time will tell how long this model remains in force and delivers.
