What does diversification in corporate strategy aim to achieve?

Diversification in corporate strategy primarily aims to expand operations into new markets, which can involve either product diversification or market diversification. By entering new markets, a company seeks to reduce its dependence on its existing markets or products, thereby spreading its risk and potentially increasing its revenue streams. This strategy allows organizations to tap into new customer bases, leverage existing core competencies in different areas, and capitalize on growth opportunities that may not be present in their current market segments.

The approach to diversification can lead to greater operational flexibility, enabling a company to respond more effectively to market changes and trends. It can also enhance a firm's competitive position by providing a broader portfolio of products or services. Overall, the goal is to improve long-term financial performance and achieve sustainable growth by entering and competing in additional markets.

By contrast, the other options focus on different aspects of organizational strategy rather than the essence of diversification itself. Reducing employee turnover pertains more to human resources strategies, increasing market dominance relates to a competitive positioning strategy, and enhancing supplier relationships involves supply chain management. Each of these aspects addresses important areas in a business context, but they do not directly encapsulate the core objective of diversification.