A market expansion policy characterized by growth in a relatively large number of markets or market segments. Increasing the range of the company’s products or investing money in several different securities achieves this growth. Three types of diversification are possible:
(1) The company could seek new products that have technological and marketing synergies with existing product lines (concentric diversification strategy).
(2) The company might search for new products that could appeal to current customers even though the new products are technologically unrelated to its current product line (horizontal diversification strategy).
(3) The company might seek new businesses that have no relationships to its current technology, products, or markets (conglomerate diversification strategy).
