Diversification is a strategy that involves a company entering new areas of business.
There are the following types of diversification strategies:
concentric (vertical) diversification;
horizontal diversification;
conglomerate diversification.
The essence of vertical diversification is that the company begins to produce new products that are technologically and marketing related to the existing product.
Horizontal diversification involves the release of new products that are not related to existing, but intended for existing customers of the company.
Conglomerative diversification is a strategy that aims to produce new products that are not related to the company's core business and its sales markets.
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