horizontal (adjective, hor-i-zon-tal, \ ˌhɑːrəˈzɑːntl \) diversification (noun, di-ver-si-fi-ca-tion, \ dəˌvɜːrsɪfɪˈkeɪʃən \)
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
