Essar Group | ఎస్సార్ గ్రూప్ | एस्सार ग्रुप | ET
DIVERSIFICATION
Diversification is a strategic business approach that involves expanding a company's operations into new markets, industries, or product lines to reduce dependence on a single revenue stream and increase overall growth potential. Types of Diversification: 1. *Horizontal diversification*: Expanding into new markets or industries that are related to the company's existing business. 2. *Vertical diversification*: Expanding into new industries or markets that are complementary to the company's existing business. 3. *Conglomerate diversification*: Expanding into new industries or markets that are unrelated to the company's existing business. Benefits of Diversification: 1. *Reduced risk*: Diversification can reduce a company's dependence on a single revenue stream, making it less vulnerable to market fluctuations. 2. *Increased growth potential*: Diversification can provide new opportunities for growth and expansion into new markets or industries. 3. *Improved competitiv...
