Abstract
Our research focuses on the difference between functional diversification strategy and product functional diversification strategy, and give a detailed definition and introduction. As well as focused on exploring how a functional diversification strategy contributes to art district branding in the early stages. We employed the case study approach, examining the SteelStacks Cultural Arts Park in Bethlehem, USA. Our findings highlight the benefits of a diverse, integrated arts district as exemplified by SteelStacks, which underwent a successful transformation. The case underscores the importance of economic revitalization, cultural renaissance, community engagement, sustainable development, and collaboration in fostering vibrant and resilient arts districts that serve both the local community and society at large.
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