By adding new product lines beyond its core business of computer software,like the Zune MP3 player and XBox 360 game system,Microsoft primarily benefits by:
A)keeping up in a market where sales come mostly from new products.
B)satisfying the changing needs of the technological research staff.
C)avoiding market saturation from products that have just been introduced to the market.
D)creating diversification and reducing risk.
E)all of these.

Question

Quizplus · Accepted Answer

By creating diversification, Microsoft is reducing its overall risk by not relying solely on its core business of computer software. By adding new product lines such as the Zune MP3 player and XBox 360 game system, Microsoft is expanding its portfolio and increasing its potential revenue streams. This also allows them to penetrate into different markets and reduce the risk of market saturation in one particular area. Therefore, option D is the best choice as it encompasses all the benefits Microsoft gains by adding new product lines.

By Adding New Product Lines Beyond Its Core Business of Computer