What is product diversification?

Diversification is the name given to the growth strategy where a business markets new products in new markets. It is a risky strategy because the business is moving into a new area of a market in which it has little or no experience. A business therefore must have a clear idea about what it expects to gain from the strategy.

RC
Answered by Robyn C. Business Studies tutor

5211 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

Who is a Soletrader?


Why is the Product Life Cycle such a useful tool to use in business?


What is the difference between a strategy and a tactic?


How would you use the marketing mix when selling a high end public luxury product?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning