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Product Diversification

Part 5. Product Innovation and Management

  1. Ashish Sood

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem05051

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Sood, A. 2010. Product Diversification. Wiley International Encyclopedia of Marketing.

Author Information

  1. Emory University, Atlanta, GA, USA

Publication History

  1. Published Online: 15 DEC 2010

Abstract

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