Reading: Diversification Example

Diversification is a growth strategy in which a company launches new products for entirely new markets. This approach takes businesses beyond their core offerings and familiar customer base, letting them explore new revenue streams and reduce dependency on existing lines.

Canada Goose is a Canadian company traditionally known for its performance outerwear like heavy parkas, the brand shifted dramatically to diversify its offerings and appeal to a broader market. In 2024, Canada Goose introduced new product lines—including t-shirts, polos, rain boots, sneakers, and lighter outerwear—to target customers in warmer climates and tap into fashion and urban lifestyle segments¹.

These new products allowed Canada Goose to enter new market segments—urban consumers seeking premium, all-season apparel—while maintaining its premium brand positioning. This strategic move illustrates diversification by creating new products for markets outside the company’s traditional cold-weather niche.

1. “Canada Goose, Known for Heavyweight Parkas, Leans Into T-Shirts and Shorts.” The Wall Street Journal, August 2024. Retrieved from https://www.wsj.com/articles/canada-goose-known-for-heavyweight-parkas-leans-into-t-shirts-and-shorts-d22d93e7

Creation note: This content was drafted with the assistance of ChatGPT, a language model developed by OpenAI, and reviewed by the author for clarity and accuracy.