Horizontal Diversification
Horizontal diversification is when a company adds new products or services to reach new customers or markets related to what it already does. Instead of going into completely different industries, it offers things that appeal to its current customers or use similar ways to sell them. This helps the company use its strengths, reputation, and customer relationships to grow and make more money.
For instance, Google diversified its business beyond internet searches into various sectors such as online advertising, cloud storage, hardware manufacturing (e.g., smartphones, tablets), operating systems (e.g., Android), and software solutions (e.g., Google Workspace, Google Maps). While these ventures differ from its core search engine, they all revolve around technology. This strategic move allowed Google to expand its revenue streams and market presence, positioning itself as a leading player in the tech industry.