General Motors Automobiles acquired Hughes Aircraft Corporation, a firm that makes aircraft components and electronics. What product development strategy is this acquisition an example of?

Question

Quizplus · Accepted Answer

This acquisition is an example of product diversification because General Motors, primarily an automobile manufacturer, is expanding its product line into a new category, namely aircraft components and electronics, which diversifies its business operations beyond its original market.

General Motors Automobiles Acquired Hughes Aircraft Corporation, a Firm That