Corporate Diversification

Corporate diversification is a strategy where a company expands its operations into new markets or product lines beyond its existing business. This approach helps mitigate risk, as the company isn't reliant on a single source of revenue. For example, a car manufacturer might branch out into electric bikes or automotive software. Diversification can enhance growth opportunities, improve financial stability, and leverage existing resources or capabilities. It can be achieved through mergers, acquisitions, or developing new products. Ultimately, it aims to create a more resilient and competitive business.