Conglomerate Diversification

Conglomerate diversification is a business strategy where a company expands its operations by acquiring or investing in businesses that are outside its current market or industry. Instead of focusing on a single line of products or services, the company aims to reduce risk and increase growth opportunities by operating in different areas. For example, a company that primarily makes electronics might invest in a food processing firm. This strategy helps spread risk, as downturns in one industry may be offset by better performance in another.