McCain is the largest French Fries provider to the food service and institutional market segment. When McCain decides to branch out from the frozen foods category into the ready-to-serve beverage market, their growth strategy is:
A)market development
B)product development
C)diversification
D)market penetration

Question

Quizplus · Accepted Answer

The decision to enter a completely new market segment (ready-to-serve beverages) is an example of diversification. This is because McCain is branching out from their core business (frozen foods) into a new and unrelated market segment. Market development and product development both involve expanding within the existing market segment, whereas market penetration is focused on gaining more market share within the existing market. Therefore, the best choice is diversification.

McCain Is the Largest French Fries Provider to the Food