Technological Diversification Strategy

A Technological Diversification Strategy involves a company expanding its technological capabilities beyond its current area of expertise. This means investing in new technologies or entering new markets to innovate and stay competitive. For example, a smartphone manufacturer might start developing software for smart home devices. By diversifying, the company aims to reduce risk, capture new customer segments, and enhance its overall growth. This strategy encourages innovation through a broader approach, allowing businesses to adapt and thrive in a rapidly changing technological landscape.