August 30th, 2021 | Updated on June 30th, 2022
Diversification can be understood as the corporate strategy that a company implements to increase the market share and sales volume by introducing new products in new markets or industries, which is distinct from its core business.
Simply put, diversification refers to the expansion of business by entering into a completely new segment or investing in a business which is external to the scope of the company’s existing product line. Businesses use this strategy for managing risk by potential threats during the economic slowdown.
