Product diversification is a business strategy that involves expanding a company's range of products or services. This approach allows a company to enter new markets or target different customer segments, reducing reliance on a single product. By offering a variety of products, businesses can increase their revenue potential and mitigate risks associated with market fluctuations. Companies often pursue product diversification to enhance their competitive advantage. For example, a company like Apple may introduce new products, such as smartwatches or wireless earbuds, alongside its core offerings like iPhones. This strategy helps attract a broader customer base and fosters brand loyalty.