WHY DO COMPANIES DIVERSIFY
:lollipop: to achieve greater profitability. Diversification is used by businesses to help them expand into markets and industries that they haven’t currently explored. This is achieved by adding new products, services, or features that will appeal to the customers in these new markets.
:lollipop: to achieving higher profitability, companies choose to diversify for a variety of other reasons. For instance, diversification can also allow a company to minimize the risk of an industry downturn, it can boost brand image, and it can also be used as a defense mechanism to protect a company from strong competition.