What Is Market Diversification?

It refers to the expansion strategy of an enterprise operating two or more industries at the same time. It can also be called "multi-industry operation", mainly including three forms: concentric diversification, horizontal diversification, and comprehensive diversification.

Market diversification

Right!

It refers to the expansion strategy of an enterprise operating two or more industries at the same time. It can also be called "multi-industry operation", which mainly includes three forms: concentric diversification, horizontal diversification, and comprehensive diversification.

Concentric diversification is a diversified operation that uses existing technologies and advantageous resources to face new markets and new customers by adding new businesses;

Horizontal diversification is a diversified operation aimed at existing markets and customers, using new technologies to increase new business;

Comprehensive diversification is a diversified operation realized by directly using new technologies to enter new markets.

The diversified business strategy is suitable for the choice of large and medium-sized enterprises. This strategy can make full use of the company's operating resources, improve the utilization of idle assets, and expand the scope of operations to ease competition pressure, reduce operating costs, diversify operating risks, enhance comprehensive competitive advantages, and accelerate Grouping process. However, the implementation of diversification strategy should consider the relevance of selected industries, corporate control and cross-industry investment risks.