Product range diversification strategies as a tool for minimizing commercial risks

Abstract

This article examines product range diversification strategies as a tool for mitigating commercial risks amid volatile demand, sanctions, and increased competition in online and offline retail. The relevance of this topic stems from the shift in competitive pressure from pricing to product range management, margins, and adapting product offerings to customers’ business processes. The scientific novelty lies in the systematization of modern approaches to product range diversification, the integration of strategic and operational risk management, and the interpretation of diversification as a mechanism for aligning the product portfolio with customer infrastructure and supply chains. This paper describes types of product range diversification and examines their impact on revenue, marginality, and business sustainability. It also discusses the effects of product range breadth and depth on the likelihood of successful new product launches. The article aims to develop a conceptual model of product range diversification as a tool for minimizing commercial risks. To achieve this, comparative, structural–functional, and content analysis methods are applied. The conclusion offers practical recommendations for retail and B2B companies, targeting researchers, consultants, and practitioners in strategic and commercial management.