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

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

You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA.

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.

Add MBA Brief to your desktop / iPad


© 2023 MBA Brief - Last updated: 30-5-2023  -  Privacy   |   Terms