A growth strategy that involves entering new markets with new products or services, spreading business risk across multiple areas. Can be related (leveraging existing capabilities) or unrelated (entering completely different industries) diversification.
'Diversification' from Latin 'diversus' (different) plus '-fication' (making), and 'strategy' from Greek 'strategia'. Business concept formalized in 1950s corporate strategy theory, particularly through portfolio management approaches.
Diversification is often a CEO's ego trip disguised as risk management - studies show that investors can diversify their own portfolios more efficiently than companies can diversify their businesses. Most successful diversification happens by accident, not by strategy.
Complete word intelligence in one call. Free tier — 50 lookups/day.