Companies choose to diversify for several reasons:
Risk Reduction: By spreading investments across different sectors, companies can mitigate the impact of a downturn in any one area. Revenue Streams: Diversification can create additional sources of revenue, making the company more resilient to market changes. Market Expansion: Entering new markets can lead to increased market share and customer base. Synergy: Companies can achieve cost savings and efficiencies by leveraging existing capabilities and resources across various lines of business.