The major diversification strategy through which products are produced that are technically similar to the company's current products but appeal to a new consumer group is:
A)Concentric diversification
B)Hierarchical diversification
C)Conglomerate diversification
D)Horizontal diversification

Question

Quizplus · Accepted Answer

Concentric diversification involves expanding into products that are closely related to the company's current products and can appeal to a new consumer group. This allows the company to leverage its existing capabilities and resources while entering into a new market. Therefore, it is the best choice for the given scenario. The other options, such as hierarchical diversification, conglomerate diversification, and horizontal diversification, involve expanding into products that are less related to the company's current products and may require significant investment and resources.

The Major Diversification Strategy Through Which Products Are Produced That