Smart Systems Inc. is a firm that manufactures and sells desktop computers to the consumer and business market segments. After extensive market research and portfolio planning, the firm decides to launch a new line of mobile phones. In this example, Digi-Smart Systems uses which of the following strategies?
A) Forward vertical integration
B) Related diversification
C) Market penetration
D) Market development
E) Backward vertical integration

Question

Quizplus · Accepted Answer

Related diversification occurs when a company expands its product lines or markets by adding new products that are related to its existing business. In this case, Smart Systems Inc. is expanding from desktop computers to mobile phones, which are related in the technology and electronics sector.