What is Diversification? Definition and meaning

Diversification

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

💡

Learn more about Diversification.

MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.