Entrepreneurship Development and Communication Skills

1.1.2.3 Diversification

Today’s business is characterized by diversification. The product portfolio of any medium or large business house reads like who is who. For example, The Tata group, a premier business house, has already iron and steel, fertilizers, light commercial vehicles, power-chemicals, tea, textiles, shipping hotel services, electronics, marine products, printing, oil and consultancy under its belt. It has now plans to foray into such areas as passenger cars, computers biotechnology, housing development and leasing activities.

Diversification, on the other hand, implies introducing different lines of products, mostly unrelated to each other. Diversification and product proliferation are used as measures to face server competition so characteristic of modern business.