Henson Electric is interested in diversifying into the frozen foods industry. The board of directors sees this as a risky move since the company can't capitalize on any of its existing markets or core strengths. Which type of growth strategy is Henson Electric considering?
A)product development
B)market development
C)market penetration
D)unrelated diversification
E)related diversification

Question

Quizplus · Accepted Answer

Henson Electric is considering unrelated diversification, which involves entering a new industry completely unrelated to its current market or core strengths. This is considered a risky move because the company has no experience or competitive advantage in the frozen foods industry.

Henson Electric Is Interested in Diversifying into the Frozen Foods