Diversification strategy is applied when companies wish to grow. It is the practice of introducing a new product into your supply chain in order to increase profits. These products could be a new segment of the industry your company already occupies, known as business-level diversification.
What companies use diversification strategy?
Examples of Horizontal Diversification
- Apple | From Computers to MP3 Players and Phones. ...
- Disney | From Cartoons to Cruises, Theme Parks, and Media. ...
- Volkswagen | Selling Cars to Everyone. ...
- Estée Lauder | Cosmetics, Personal Care, and Perfumes. ...
- Pepsi and Coca-Cola | Beverages to Snacks and Energy Drinks.
What is the example of diversification strategy?
Strategies for Diversification
A company may decide to diversify its activities by expanding into markets or products that are related to its current business. For example, an auto company may diversify by adding a new car model or by expanding into a related market like trucks.
