Posted in Marketing and Strategy Terms, Total Reads: 739
Definition: Diagonal Expansion
Process by which a business expands its product lines or offerings by creating new items that can be created using the existing technology is called diagonal expansion. With a few additional materials and existing technology already in use to create the standard offerings, a company can leverage economies of scope to create new items to attract consumers.
For example, several companies roll out limited edition products during festivals or grand events.
During the FIFA world cup 2014, Gillette brought out a World-Cup Special Razor with FIFA logo on its handle.
Also, chocolate companies release special packaging for its products during Valentine’s Day.