Lateral Diversification

Lateral diversification is a business strategy where a company expands its product offerings by adding new products that are not directly related to its existing products but may appeal to the same customer base. For example, a company that makes sports shoes might start producing athletic apparel or accessories. While these new products are different from shoes, they target similar consumers and leverage the company’s brand and market presence. This approach helps companies reduce risks, harness new growth opportunities, and reach a broader audience without straying too far from their core business.