Abstract

India-based Cello World (Cello), a manufacturer of homeware products, had a vastly diversified product portfolio that included lunchboxes, water bottles, cookware, dinnerware, home appliances, bakeware, bathroom accessories, and cleaning supplies. It also had a presence in stationery, paper products, tools, and dies. In 2020, when the COVID-19 pandemic played havoc with most businesses across the world, Cello managed to sail through with just a few scratches. Analysts attributed this to the product diversification of the company. During the pandemic induced lockdowns, the sale of lunch boxes and water bottles came down, but the sale of cleaning products and storage containers went up. Cello planned to diversify further into steelware and glassware. It was also looking at growing inorganically and hence was scouting around for businesses whose product portfolio as well as vision and mission matched that of Cello.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand diversification as a strategy
• Use of ANSOFF matrix to analyse the strategies of a company
• Evaluate how diversification can help in managing the external business challenges

Keywords

Cello; Diversification; Diversified Products; Homeware; Ansoff Matrix; Market Penetration; Product Development; Market Development; Diversification; Types of Diversification; Vertical Integration; Horizontal Integration;