Sales of watches among teenagers and 20-somethings are declining rapidly as this age group uses cellphones, iPods, and other devices to tell time. A company that specializes in selling inexpensive watches to this age group may wish to consider ____ in order to develop new products other than watches.

Question

Quizplus · Accepted Answer

Unrelated diversification involves expanding into a completely different industry or product line. In this case, since sales of watches are declining among the target age group, it may be beneficial for the company to consider expanding into a different market or product line in order to stay relevant and continue to generate profits.

Sales of Watches Among Teenagers and 20-Somethings Are Declining Rapidly