What is a diversification strategy?

A diversification strategy is a method of expansion or growth followed by businesses. It involves launching a new product or product line, usually in a new market. It helps businesses to identify new opportunities, boost profits, increase sales revenue and expand market share. The strategy also gives them leverage over their competitors.

What is diversification & why is it important?

Diversification is a strategy for growth that works by adding new products or services to your existing product line, or expanding into new market segments. Diversification can help your business reach new levels of growth that might not be possible with your current offerings, particularly if you've reached market penetration.

Is diversification a valuable strategy for profit & growth?

Last updated: Mar 23, 2022 • 4 min read Diversification can be a valuable strategy for profit and growth. A company can expand its products or services to gain an edge on the competition and a headstart on inevitable changes in the marketplace. Diversification can be a valuable strategy for profit and growth.