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Horizontal diversification in action


THE STANDARD
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Courtesy]
Product diversification is a strategy employed by a company, at a business or corporate level, to increase profitability and achieve higher sales volume from new products.
In the words of Warren Buffet, “Diversification is protection against ignorance, it makes little sense for those who know what they’re doing.”
What is horizontal diversification?
The goal of a horizontal merger is to create a new, larger organisation with more market share. This is done by innovating or licensing new products, or through a merger or acquisition of another company. Unlike vertical diversification, all this is done without having to be involved in the production process of the new products. Here are a few examples of firms that successfully executed horizontal diversification. ....

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