Product Diversification

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