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WordNet-Online
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Definitions from the WebProduct DiversificationDescription:Product diversification refers to the strategy of expanding a company's product line by introducing new products or variations of existing products. This approach aims to reduce business risk by entering different markets or appealing to a wider range of customers. Sense 1: Business StrategyIn the context of business, product diversification is the process of introducing new products or modifying existing ones to reach different target markets or meet varied customer preferences. This strategy can help companies mitigate risk, increase market share, and achieve sustainable growth. Example Sentence 1: The company successfully implemented product diversification by launching a line of organic skincare products, which attracted a new segment of health-conscious consumers. Example Sentence 2: Many companies opt for product diversification to minimize their dependence on a particular product and avoid potential losses if market conditions change. Sense 2: Investment PortfolioProduct diversification is also a term used in the context of investment portfolios. It refers to spreading investments across different asset classes or industries to reduce risk and achieve a more balanced and resilient portfolio. Example Sentence 1: Financial advisors often recommend product diversification to investors as a way to minimize the impact of market volatility on their overall investment portfolio. Example Sentence 2: John decided to diversify his investment portfolio by including bonds, stocks, and real estate, adopting a strategy of product diversification to mitigate risk. Related products: | ||||
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