A computer services firm decides to diversify in the field of cosmetics. According to the product market matrix, the innovativeness risk in this case could be _____.

Question

Quizplus · Accepted Answer

Diversifying into a completely different field, such as cosmetics for a computer services firm, represents a high level of innovativeness risk. This is because the firm is moving into an unfamiliar market with new products, which involves significant uncertainties and challenges.

A Computer Services Firm Decides to Diversify in the Field