Blockchain Glossary

Diversification

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It can be understood as a corporate strategy that a firm implements to increase market share and sales volume by introducing new products in the new industries or markets. This is distinct from the core business.

Diversification means expanding a business by entering into a whole new segment or investing in the business external to the company’s existing product line scope. Businesses use this strategy to manage the risk by using the potential feats during an economic slowdown.

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