The primary reason that an organization would pursue a diversification strategy is to

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The primary goal of pursuing a diversification strategy is usually to achieve synergy. This can occur in a few different ways, such as gaining access to new markets, leveraging existing resources and capabilities across different business units, or spreading risk across a portfolio of products and services. While decreasing operational costs or better defending against price wars might be potential benefits of diversification, they are typically not the primary reasons for pursuing this strategy. Increasing customer use could be a goal of diversification, but again, it is not usually the primary reason.

The Primary Reason That an Organization Would Pursue a Diversification