7.1.4 How Companies should diversify their Business?

Diversification Strategy of Small Businesses

Successful diversification will ensure competitive advantage to a company in achieving their goals. Using this strategic instrument this will develop their business by entering new production lines and/or markets and reduce the risk by spreading their investments. However, its implementation also brings risks. It depends on the manager/owner - if they will give a new impetus to your business or turn into a failure.

Steps in the development of the SME diversification strategy: