Product Diversification

Product diversification is a business strategy where a company expands its range of products or services to reach new markets or reduce risks. By introducing new items that may be related or completely different from existing offerings, a company can attract more customers and enhance its revenue sources. For example, a beverage company that sells soda might diversify by adding energy drinks or bottled water. This approach helps businesses adapt to changing market trends, respond to competition, and improve overall stability by not relying solely on one product.