Diversification strategy, also known as diversification strategy, refers to a development strategy in which an enterprise operates two or more products or services with different basic economic purposes at the same time. Diversification strategy is relative to the professional operation of enterprises, and its contents include: diversification of products, diversification of markets, diversification of investment areas and diversification of capital. The following is a model of diversification strategy:
Horizontal diversification: Horizontal diversification is to expand business areas horizontally with the existing product market as the center, also known as horizontal diversification or professional diversification.
Multi-directional diversification: This refers to diversifying business areas by developing completely heterogeneous products and markets that are somewhat related to existing products and market areas.
Compound diversification: This is a strategy to seek growth opportunities from products and markets that have no obvious relationship with existing business fields. That is, the new businesses developed by the company have nothing to do with the original products and markets. Where relevant, the required technologies, business methods, sales channels, etc. must be acquired again.