PRODUCT DIVERSIFICATION
The
meaning of the word diversification is very simple. As soon as a manufacturer
offers more than one product, it is described as product diversification. Diversification
implies that a company has moved from one
product item to marketing more than one product. Generally,
diversification is categorised into two types:
1. Related Diversification and
2. Unrelated Diversification.
Where
the new products introduced in the product mix are similar to the existing
product, diversification is described as 'related'. When a company
accepts new products which are very different from the existing products, the
diversification is said to be ‘unrelated'.
