Production Diversification

Production diversification refers to a strategy where a company or an economy expands the variety of products or services it offers. Instead of relying heavily on a single product, diversification involves adding new products to reduce risk, reach new markets, and capitalize on different opportunities. This approach helps improve stability and growth, especially when demand for one product declines. For businesses, diversification can mean entering different industries; for economies, it means reducing dependence on a single sector, making them more resilient against economic fluctuations.