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product development is that of a highly dispersed process that capitalizes on the skills and insights of people and organizations spread throughout the entire world. However, the benefits of dispersion come at a cost.
The product diversification strategy is different from product development in that it involves creating a new customer base, which by definition expands the market potential of the original product.ny modification of a current product that serves to expand the potential market implies that the company is following a strategy of product diversification.