Definition: Diversification is a business or corporate strategy aiming at selling new products or new services in new markets.
It is one of the 4 growth strategies of the Ansoff Matrix (besides market penetration, product development and market development).
Because both the offering and the market are new, it usually requires a company to acquire new skills and facilities, and is relatively risky. On the other hand, D strategies also can decrease risk, because a large corporation can spread certain risks if it operates on more than one market. D can be done in four ways:
- Horizontal Diversification
- Vertical Diversification
- Concentric Diversification
- Conglomerate Diversification



More on diversification.
More on business strategy: 3C's Model of Ohmae, Ansoff Matrix, Business Continuity Planning, Business Model, Business Model Canvas, more...


MBA Brief offers brief, yet very accurate definitions of MBA concepts, frameworks, methods and models. We keep it short and provide some links in case you'd like to learn more around a subject.

© 2021 MBA Brief - Last updated: 20-1-2021  -  Privacy   |   Terms