Question

What is Diversification strategy? Explain.

Answer 1

Answer:

A diversification strategy is the strategy that an organization adopts for the development of its business. ... The strategy is to enter into a new market or industry which the organization is not currently in, whilst also creating a new product for the new market.

Answer 2

Answer:

Diversification is a corporate strategy to enter into a new products or product lines, new services or new markets, involving substantially different skills, technology and knowledge. Diversification is one of the four main growth strategies defined by Igor Ansoff in the Ansoff Matrix: Products.