Widget Corp. is often known for its motto "Don't put all your eggs in one basket." Over the course of the past 15 years, the company has acquired a wide array of firms, which operate in different markets that are not associated with each other. In the context of corporate strategies, it is evident that Widget Corp. has adopted a(n) _____.
A) related diversification strategy
B) differentiation strategy
C) analyzer strategy
D) unrelated diversification strategy

Question

Quizplus · Accepted Answer

Widget Corp.'s approach of acquiring firms in different, non-associated markets aligns with an unrelated diversification strategy. This strategy involves expanding into industries or markets that are not related to the company's current operations or markets, hence the term "unrelated." The motto "Don't put all your eggs in one basket" reflects the rationale behind this strategy, aiming to spread risk across different ventures.