Why do organizations go for diversification strategy? Explain with the help of an example.

Diversification is a strategic management approach where an organization expands its operations by entering new markets or industries, which may or may not be related to its existing business. This strategy can help organizations mitigate risk, achieve growth, and utilize resources and capabilities more efficiently. Organizations pursue diversification for several reasons, each driven by the desire to improve their overall competitiveness, sustainability, and profitability.

One of the primary reasons organizations opt for a diversification strategy is to reduce the risks associated with market fluctuations. By entering different markets or industries, a company can protect itself from the adverse effects of downturns in its core market. For instance, if a company is heavily reliant on a single industry—say, the automotive sector—economic recessions or technological shifts might hurt its bottom line. However, ________ _____ ______ ________ ________.
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