Market Diversification

Market diversification is a strategy that companies use to expand their business by entering new markets or offering new products. It helps reduce risk by spreading investments across different areas, rather than relying heavily on one market or product. For example, if a company that makes shoes starts selling clothing, it is diversifying. This approach can lead to increased revenue opportunities and a stronger brand presence, but it also requires careful research and planning to ensure the new ventures are well-aligned with the company’s goals and capabilities.