Diversification Strategies at Cello

Diversification Strategies at Cello
Case Code: BSTR658
Case Length: 9 Pages
Period: 2013-2021
Pub Date: 2023
Teaching Note: Available
Price: Rs.300
Organization : Cello World Private Limited
Industry : Home Appliances & Consumer Products
Countries : India
Themes: Diversification, Brand Development, Brand Extension
Diversification Strategies at Cello
Abstract Case Intro 1 Case Intro 2 Excerpts


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.


The case is structured to achieve the following teaching 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.



Cello; diversification; diversified products; homeware; Ansoff Matrix; market penetration; product development; market development; diversification; types of diversification; vertical integration; horizontal integration;

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