This diploma thesis „Implementation of diversification strategy through acquisition“ explores the application of theoretical concept from the title in the example of Procter & Gamble and Gillette. Although this is one of the most explored and covered by media examples, the exploration of this thesis is oriented on the consequences of the acquisition 15 years later. The thesis consists of five basic chapters, including the introduction and the conclusion. After the introductory chapter, in which the topic and goals of the research are explained, in the theoretical framework diversification strategies are explained. The term of acquisition is also explained in this part of the thesis. The central part of the thesis defines diversification strategies and explains the reasons for applying them. Then, the main hypotheses of diversification strategy application are shown along with the ways of implementation. In the next section of the thesis the acquisition process is explained in detail along with the reasons that inspire companies on this act. Next, the planning process for acquisition is explained as well as the ways of financing acquisition. Empirical research of implementation of diversification strategy through acquisition in the case of Procter & Gamble and Gillette and its results are given in the fourth chapter of the thesis. The topic of the thesis is focused on the analysis of the implementation of diversification strategy through acquisition on a real example. The main objective of the research is to determine and explain theoretical concepts on the globally known example. It is concluded that in this example diversification strategy and acquisition are executed successfully and have had positive impact on the business. However, with the further growth of the company in the past 15 years, the complexity of the business became overwhelming. In terms of number of the brands and products, further growth should be stopped and the company should concentrate on its core competences and leading brands which should be further developed.