Definition: is a process of developing or adding new products or services to the existing ones. When such a diversification method is employed, the new goods differ from the existing product line or current business technologies but may be appealing to the current customers. Horizontal diversification is employed for a number of objectives. It may serve to increase the profit and the regular cash flows; to introduce a company in a new business area; to enter into new markets; to use the existing resources in multiple ways; or to grow at a faster rate without the expansion.
In a Sentence:
The horizontal diversification will allow us to introduce the new product to the consumers without investing in new equipment.
We can go with the horizontal diversification and add a new product line to the one we’re already working on.
The new service will have nothing to do with the one we are currently offering. That’s how horizontal diversification works.
Synonyms and related words: diversification, vertical diversification, business technology, product line, concentric diversification, conglomerate diversification