Greyzone, a company that creates customized household furniture, is based in Terrania and is looking to enter other countries as well. The company identifies the country of Nyevka as a good option because the entry barriers for new companies are low in Nyevka. Which statement indicates that Greyzone follows a diversification strategy?
A) Greyzone leaves the Terranian market entirely in order to establish itself in the Nyevkan market with its current products.
B) Noting that Nyevka lacks well-established suppliers of office equipment, Greyzone begins to manufacture and supply office equipment.
C) Greyzone manufactures furniture in Terrania and ships it to Nyevka without setting up outlets in Nyevka.
D) Noting that production costs are lower in Nyevka, Greyzone shifts its production operations entirely to Nyevka.
E) Greyzone does not modify its products for the Nyevkan market.

Question

Quizplus · Accepted Answer

Diversification involves entering into new markets or industries, often by developing new products or services. By beginning to manufacture and supply office equipment, Greyzone is entering a new market segment, which indicates a diversification strategy.

Greyzone, a Company That Creates Customized Household Furniture, Is Based