Horizontal Diversification

Horizontal Diversification is a growth strategy in which a company seeks to add to its existing product lines with improved versions of the originals or with new products that add value and appeal for its current customers. This is especially advantageous if a customer base is loyal to a brand and if the new product(s) are of equal or better quality and remain within an accepted price point.

Reasons for horizontal diversification can be a result of combating market saturation for similar products or if the original product is at risk for a downturn in opportunities for growth. Other circumstances for committing to offering new products could be taking opportunities that promise greater profitability and taking advantage of consumer trends based on accepted open rates from the latest email marketing data.