diversification matrix

A diversification matrix is a strategic tool used by businesses to visualize and analyze their product or market portfolio. It helps identify areas where the company is concentrated or lacks presence. By mapping different products or markets against factors like growth potential and risk, it assists decision-makers in balancing their portfolio—either by investing more in high-potential areas or reducing exposure to risky ones. Essentially, it's a visual guide that supports smarter resource allocation to enhance growth and stability.