Diversification is a business development strategy that sees a company enter new markets and offer products and services that are different from its existing ones.
That is technically what is meant by diversification, but in reality, there are different degrees that could, arguably, be considered diversification to some extent. Those are:
– Selling your existing product or service to a very different new market
– Creating a new product or service for your existing market
– Creating a new product or service for an entirely new market
Diversification can be an important component of any company strategy. There are many examples throughout history of successful businesses moving into new areas.
There are different motivations for building and executing a diversification strategy for your business. Before you begin working through the 6 steps outlined in this guide, we will also take you through the steps to understand your reasoning behind diversification.