Question & Answer: Identify a firm that has recently engaged in diversification. Search the firm's website to identify executives'…..

Colgate Palmolive recently diversified their business in Asia. For past 200 years, there focus was on Oral care segment only but recently they started diversifying and focusing on personal care products.

The executives on website mention that personal care segment is growing at high rate in Asia and it is the right time to diversify the business. Also, from past 3 to 4 years, there is stagnancy in Oral care business as Organic growth has been around 5% only. Thus, to increase business profitability it the right move. Also, the Oral care distribution is very advance and present till roots, so it will be beneficial to use that for personal care segment too.

Yes, the reasons look convincing as:

• Toothbrush and Toothpaste category is at maturity phase
• Colgate already is the leader in Oral care, so it is right time to diversify
• The Asian market is in growing phase and using the brand value will be highly beneficial for Colgate to easily diversify the business