A bank has been providing finance to large number of farmers in a particular district in Southern India for their agriculture operation. Now, it wants to come out with a new scheme of offering education loans to the children of farmers. The bank appears to be following

Diversification is a corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that new market. This is most risky section of the Ansoff Matrix, as the business has no experience in the new market and does not know if the product is going to be successful. Education loans are different from agriculture loans, so it is diversification growth strategy.