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Diversification Strategies Case Study

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Case Title:

Kores: Reinventing itself through Diversification

Publication Year : 2005

Authors: Mercy Mathew, Souvik Dhar

Industry: Office products

Region:India

Case Code: DIS0007

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
As the market leader in the Indian carbon paper market, Kores India Ltd. had donned the image of ‘the carbon paper company’. However, decline in the demand for carbon paper forced the company to diversify into various businesses. Over the years Kores diversified its operations to include businesses like: (1) computer systems; (2) business machines; (3) auto component foundry; (4) labeling systems; (5) art materials; and (6) writing instruments. Kores was confident that its diversification strategy would be beneficial to the company in the future. However, analysts were of the opinion that Kores would face tough competition in the businesses it has diversified into.

Pedagogical Objectives:

  • To provide an insight into the evolution of Kores and the diversification strategy adopted by the company
  • To discuss whether the diversification strategy based on leveraging Kores’ brand name would be a successful one.

Keywords : Kores India Ltd; Diversification strategy; Core competency; Product line extension; Product portfolio management; Diversification Strategies Case Study; Brand leverage; Office equipment suppliers; Convergence of distribution channel; Banking and office automation industry; Information technology (IT) peripherals sector

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