What is Diversification strategy? Explain. - Vidyadip

Question

What is Diversification strategy? Explain.

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Answer

Diversification means adding new lines of business. These new lines of business may be related to the current business or may be quite unrelated. If the new lines added, make use of the firm's existing technology, production facilities or distribution channels or it amounts to backward or forward integration, it may regarded as related diversification.

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