Concentric Diversification

Definition: Concentric Diversification is one of 4 possible diversification strategies, besides horizontal diversification, vertical diversification and conglomerate diversification.
D is one of the 4 growth strategies of the Ansoff Matrix (besides market penetration, product development and market development).
In a CD strategy, a company builds in new product lines or services that have technological and/or marketing synergies with existing product lines, even though the products may appeal to a new customer group.