Zodiac Case

1. What were the bases of the synergies underlying each of Zodiac’s diversifications

1896: ballon ascent

1937: boots infladables

1978: Aerazur: parachutes, life vests, life rast

1987: Air cruser: inflatable, escape slides

1997: Sicma Aero seats, We ber Aircraft: seats

May aerospace: vaccum, waste system

1999: Intertechnique: components of aircraft

Combining new units of airbags for autos

2003: total sales : 1.48 bn € - profits: 115 m €

2004: NASA

We see by these facts an big diversification of the Zodiac company.

The bases of these diversifications are the knowledge and technology of the company. After the crach of the balloon, which took down the market of airships, Zodiac could have passed to boat inflatable market thanks to its bases. From there, Zodiac bought the company Aerazur to diversificate its products and to take more market parts. After that, they put their technology and their knowledge serving the consumers and they began one of the major companies on the aerospatial market by buying competitors. With the same strategy, Zodiac tries to conquer the automobile market, since 2000.

These diversifications generate advantages, but potential dangers too.

2. What are the advantages and potential dangers of such a basis of diversification

All these diversifications can have advantages:

By increasing the efficiency of the firm infrastructure with acquisitions, there will be more gains, and it will be easier to go on new markets and to take the opportunities present on the market.

With these new diversifications, they will be able to put in difficulty their competitors

Linked to a better efficiency of the firm infrastructure, the Research and development department will be more efficient for innovation, because of more and more knowledge.

With a diversification, there can have more products, so there can be more stakeholders, which can enrich the company.

Diversification can improve income stabilization and touch more customers...