Pluto Corp. has been manufacturing hardware materials for its existing customer base for several years. Recently, the company introduced a new line of electronic products to its customers. Pluto Corp. is engaging in _________.

Question

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Pluto Corp. is engaging in horizontal diversification by adding a new line of products (electronic products) that are different from its existing product line (hardware materials) but targeting the same customer base. Horizontal diversification involves expanding into new product lines or markets that are related or complementary to the company's existing business, aiming to reach a broader market or offer more variety to current customers.