Product Diversification Assignment Help

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Get an idea of Product Diversification

The process according to which, any changes or modification or improvement are made on a current product, is termed as Product Diversification. Businesses aim to expand their market reach and serve a large number of customers and to achieve these goals. They deliver diversified products or change and modify their existing products so as to attract more customers.

Product Diversification is a strategy for market expansion, and this helps the companies to reach more customers, thereby maximising their profit. Many times companies introduce new product lines for varied customers. This, in turn, helps them in spreading their business more.

Effectiveness of Product Diversification

It is indubitable that Product Diversification is an effective business strategy and this helps in managing the business risks as well. Product Diversification can be achieved in two ways.

  1. Either by modifying the existing products for which the company is known
  2. By introducing new products or brands in the market to expand the customer base.

By modifying the original product, its potentiality is increased. This attracts more consumers.You can think it to be its main objective of Product Diversification.But, before going for Product Diversification, doing proper market research is essential in order to understand the customer base, the current demand, and preferences of the target consumers.

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