Meaning of horizontal diversification strategy. Diversification Strategy Definition | Types of Diversification StrategiesFirms add new products or services complementary to the existing products. Reasons for concentric diversification: Forward Integration: Horizontal diversification[ edit ] The company adds new products or services that are meaning of horizontal diversification strategy technologically or commercially unrelated to current products but that may appeal to current customers. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity or instability. Horizontal diversification strategy is less risky than conglomerate diversification because of the fact that the current customers of the organization are already exposed. Bombay Dyeing, DCM etc. The effect of cyclical fluctuations is, thus, reduced. The cost-of-entry test:
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Diversification Strategy Definition | Types of Diversification Strategies
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