Business Diversification Strategy

A business diversification strategy involves a company expanding its operations by entering new markets or adding new products or services. This approach helps spread risk, as relying on a single product or market can be risky if demand drops. For example, a smartphone manufacturer might start producing smart home devices. Diversification can enhance growth opportunities and increase competitiveness, allowing businesses to tap into different customer bases and revenue streams. Ultimately, it aims to strengthen the overall business and improve its resilience in a changing market.