A diversification strategy intends to open new markets with the availability of new

products and services, in order to increase a companys wealth. Companies decide to

diversify in order to utilize some of their resources, underutilized resources. This makes
the company able to attract new markets not discovered earlier. Unilever is definitely the
king of product diversification with over 30 brands being sold in more than 190
countries. The companys brand categories include: home care, personal care, foods
and refreshments. Unilever brands by category:
Home care Omo, Persil, Surf, Comfort, Cif, and Pureit
Personal care Axe, Lynx, Dove, Sunsilk, Rexona, Lux, Signal, Ponds Lifebuoy,
Vaseline, and Close Up
Foods and refreshments Knorr, Heartbrand, Ben & Jerrys, Lipton, and Brooke Bond

There are three types of diversification : concentric, horizontal and conglomerate.

Concentric Diversification is a technological similarity between the industries, which

means that the frim is able to leverage its technical knowhow to gain some advantage.

Horizontal Diversification company adds new product or services that are often
technologically or commercially unrelated to current products that may appeal to current
customer. This strategy tends to increase the firms dependence on a certain market
segments.

Conglomerate diversification is growth strategy that involves adding new products or

services that are significantly different from the organization's present products or
services. Conglomerat diversification occurs when the firm diversifies into an area(s)
totally unrelated to the organization current business.