Horizontal Diversification

Horizontal diversification is a business strategy where a company expands its product line by adding new items that are not directly related to its existing products but appeal to the same customer base. For example, a company that sells smartphones might start offering smartwatches. This strategy aims to increase the company’s market share, attract new customers, and reduce risks by spreading its offerings across different products. By diversifying horizontally, the business can leverage its brand and customer relationships while tapping into new revenue streams.