what does product diversification mean?

Look at General Electric, they have a tremendously diverse product output.

Not producing only one product, but many different products, e.g. conglomerate.

Product diversification refers to the strategy of expanding a company's product portfolio to include a wide range of different products or product lines. This involves not only offering additional variations or versions of existing products but also introducing entirely new products to the market. The goal of product diversification is to reduce reliance on a single product or market segment, spread risk, and capture a larger market share by appealing to different customer needs and preferences.

In the example you provided, General Electric (GE), as a conglomerate, has adopted a product diversification strategy. Unlike companies that specialize in a specific industry or product category, GE has a diverse product output spanning various industries such as aviation, healthcare, power, renewable energy, digital solutions, and more. By operating across multiple industries, GE reduces the risk associated with relying on a single market and gains a competitive advantage by leveraging its expertise across different product segments.

To identify whether a company has a diversified product portfolio, you can examine its annual reports, website, or other sources of information where the company lists its products or segments. By evaluating the range of products offered by the company and their diversity across different industries or market segments, you can determine if the company has implemented a product diversification strategy.