Conglomerate Meaning: Definition, Examples, and Translations

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conglomerate

[kənˈɡlɒmərət ]

Definition

Context #1 | Noun

business entity

A conglomerate is a large corporation that owns a number of smaller companies in various industries. This structure allows the conglomerate to diversify its investments and reduce risks associated with market volatility. Often, these smaller companies operate independently and are involved in different sectors, such as manufacturing, technology, and services. Conglomerates may also benefit from economies of scale, enabling them to reduce costs and increase efficiency. Due to their vast resources and reach, conglomerates can influence market trends and economic conditions.

Synonyms

corporation, holding company, multi-industry company.

Examples of usage

  • The conglomerate acquired several startups to expand its portfolio.
  • Many conglomerates operate in more than one industry.
  • The company is known as a conglomerate due to its diverse holdings.
  • Investors often look to conglomerates for stability.

Translations

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Origin of 'conglomerate'

The term 'conglomerate' originates from the Latin word 'conglomerare', which means 'to wind together' or 'to roll together'. This reflects the essence of a conglomerate as it rolls together multiple businesses into a single entity. The use of the term in the corporate sense began to rise in the mid-20th century, especially during periods of economic growth when diversification became a common strategy for companies seeking to mitigate risks and expand their market reach. Conglomerates became prominent during the 1960s and 1970s, when companies started acquiring other businesses outside their core operations, driven by a desire for growth and profitability. The strategy faced criticism in the 1980s and 1990s due to concerns over management inefficiencies and a lack of focus. Despite this, conglomerates continue to play a significant role in the global economy, adapting to changing market conditions and focusing on strategic acquisitions.


Word Frequency Rank

Ranked #10,815, this word falls into high-advanced vocabulary. It appears less frequently but is valuable for expressing precise meanings in specific contexts.