18 Explain the term 'diversification' using a business example.

[M huzaifa jillani]

(KN)
Diversification means a business starts offering new products or enters new markets to reduce risk and increase profits.
(APP)
For example a mobile phone company like Samsung also makes TV s, fridge and laptop so it's earns money from different products.
(AN)
This helps the business stay safe if one products sales fall because it can still earn profit from other products or markets.

[hassanalizafar]

[KN] Diversification means a business expands into new products or markets to spread risk.
[APP] For instance, a clothing brand might start selling perfumes in addition to clothes.
[AN] By adding a new product line the business does not rely on one source of income this reduces the impact if clothing sales fall keeping overall revenue more stable which improves financial security and increasing opportunities for growth.

[Shaliza khawaja]

Diversifying means growing yor business and spreading the risk of failure and increasing growth opprtunites
for example Apple diversified by moving from just phne to laptops, headphones and smartwatches
it helps bc if one product isn't doing good the other product can fill its performance, making revenue more stable and less dependent on a single procust , furthermore it allows they to have reach to new customer groups

[sarah_naeem]

[KN]: Diversification means when a business expands into new products to spread risk.
[APP]: For example, if a clothing brand like sapphire sells perfumes in addition to clothes.
[AN]: Thus, by adding products the business doesn't only rely on one kind of product but now on different kinds of products which attracts more customers and also leads to customer loyalty as they now see the business developing more, this also increases sales and revenue which improves the business financially and increases it's opportunity for growth.

[Areeba Arshad]

[KN] Diversification means a business expands into new products or markets to spread risk and increase growth opportunities.
[APP] For example, a company that originally only makes soft drinks might start producing snacks as well.
[AN] This reduces dependence on one product line, allows the business to keep earning even if drink sales decline and helps stabilise revenue by reaching new customers and markets.

[Tuqwa]

kn:diversification means a business expands its range of products or markets to reduce risk
app:Forexample if a company that only makes soft drinks starts selling snacks as well it is diversifying its product range.
an:dhis helps spread risk because if drink sales decrease the business can still earn income from snack sales keeping overall profits more stable.