A major risk in using a new venture to reposition existing businesses is that the diversifying firm may not be able to sustain the new venture's market position.

Question

Quizplus · Accepted Answer

Diversifying into new ventures involves risks such as the firm's inability to understand the new market dynamics, lack of expertise, and potential dilution of focus and resources, which can lead to difficulties in sustaining the new venture's market position.

A Major Risk in Using a New Venture to Reposition