3.If company has 5 products and company has different brand for different product than company in a way is diversified because if one brand fails than another brand will make sure that company does not suffer loss but in case of umbrella branding since there is only one brand and if that brand fails than the existence of the company will be in jeopardy. In simple words, due to the company selling all products under one brand there is no diversification and hence can prove to be a risky strategy as far as the company is concerned.