Diversify to Grow Your Business

Diversification is a growth strategy that involves entering into a new market or industry - one that the business doesn't currently operate in - while also creating a new product for that new market.

There are several different types of diversification:

• Horizontal diversification
• Concentric diversification
• Conglomerate diversification
• Vertical diversification

Key Learning Outcomes: Deciding how and when to diversify will require:

• detailed market research for the new product or service
• a thorough assessment of customer needs
• a clear product development strategy and market testing
• sales, marketing and supply chain operations able to cope with the added demands