Published Online: 15 DEC 2010
Copyright © 2011 John Wiley & Sons, Ltd. All rights reserved.
Wiley International Encyclopedia of Marketing
How to Cite
Sood, A. 2010. Product Diversification. Wiley International Encyclopedia of Marketing.
- Published Online: 15 DEC 2010
This article encompasses product diversification, a tool that helps firms formulate their product and market growth strategy. Diversification is the most risky of the four growth strategies since it requires a firm to acquire new skills, new techniques, and new facilities. There are three types of product diversification: vertical, horizontal, and lateral diversification. Firms may employ these three types of diversification on the basis of market growth conditions.
Keywords: product diversification; growth strategies; Ansoff matrix; vertical; horizontal; lateral diversification