Reasons for business diversification

Business diversification refers to expanding a company’s operations into new or unrelated products, services, markets, or
industries.
Why is diversification important in business?

There are four key reasons why businesses adopt a diversification strategy:

  1. The company wants more revenue
  2. The company wants less economic risk
  3. The company’s core business is in decline
  4. The company wants to exploit potential synergies