If McDonald's Canada decided to diversify its business offerings by buying out and operating a company like Red Lobster, their marketing strategy would be.
A)related diversification.
B)product development.
C)market development.
D)market penetration.

Question

Quizplus · Accepted Answer

Related diversification involves expanding a company's business offerings into areas that are related or complementary to its current business. McDonald's and Red Lobster are both in the food industry, and diversifying in this way would allow McDonald's to leverage its existing capabilities and resources while also entering a new market that is related to its core business. This would require a different marketing strategy than simple market penetration, product development, or market development.

If McDonald's Canada Decided to Diversify Its Business Offerings by Buying