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Conglomerate

kuhn-GLOM-uh-ruht /kənˈɡlɒmərət/

nounC1GMATTOEFL

formalbusiness

A large corporation formed by the merging of separate and diverse firms, often operating in entirely different industries.

The key characteristic is diversification across unrelated industries, often through a series of acquisitions. This strategy aims to spread risk but can also lead to complex management structures.

The story behind the word. The word 'conglomerate' rolls right out of the Latin 'conglomerare,' which means 'to roll together.' This, in turn, comes from 'com-' (together) and 'glomerare' (to form into a ball), derived from 'glomus' (a ball or clew). So, a conglomerate company is like a giant ball, formed by rolling together many different, often unrelated, businesses into one massive entity.

Word relationships

Holding company: A company that owns controlling shares of other companies, but 'conglomerate' emphasizes the diversity of those companies.
Group: A more general term; 'conglomerate' specifically refers to a large, diversified corporation.

Niche company: A company focused on a specific, narrow market segment.
Specialist: A company that focuses on a single area of expertise.

Commonly confused with

Monopoly: A monopoly controls an entire market. A conglomerate is diversified across different markets, not necessarily dominating any single one.

Word family

conglomeration (noun): A collection or mass of miscellaneous things.
conglomerate (verb): To gather into a compact mass.

Collocations

multinational conglomerate
industrial conglomerate
media conglomerate
diversified conglomerate

Example sentences

"The multinational conglomerate owned businesses ranging from media and entertainment to aerospace and financial services." Describing a large, diversified company.
"Many conglomerates have faced pressure to divest non-core assets to simplify their structure and improve shareholder value." Discussing business models.

Memory hook

A CONGLOMERATE is a company that has CONGLOMERated (rolled together) many different businesses. CONGLOMERATE = ROLL together.

When not to use

Do not use 'conglomerate' for a company that operates in a single industry or closely related industries, even if it's very large. The diversity of business lines is crucial.

Fun facts

Conglomerates were very popular in the 1960s and 70s as a strategy for growth and risk diversification, but many have since 'de-conglomerated' through divestitures and spin-offs.

Related words

Divestiture, Spin-off, Merger

Explore more words

Diversify, diversification, consortium, diverse, conurbation, omnibus