TABLE OF CONTENT

a) Introduction

b) Corporate diversification

c) Reasons for Diversification

d) Types of diversification strategies

e) GOAL of diversification

f) RISK of diversification

g) Corporate diversification of TATA group

h) List of diversification of TATA group

i)CONCLUSION

Introduction

Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally via investing in a promising business outside of the scope of the existing business unit.
Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix:[1]
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Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually requires a company to acquire new skills, new techniques and new facilities.

Corporate diversification

Corporate diversification is the process of a company expanding into different areas, such as industries and