Why companies diversify their range of products?

Companies diversify their range of products to reduce risk by spreading their investments across different markets and sectors, thereby minimizing the impact of a downturn in any single area. Diversification can also help capture new customer segments, enhance brand recognition, and increase revenue streams. Additionally, it allows companies to leverage existing resources and capabilities, fostering innovation and competitiveness in an evolving marketplace. Overall, a diversified product range can lead to greater financial stability and growth opportunities.