Skylark Sodas has been a market leader in the soft drink industry for several decades. However, its market research shows that consumer tastes have begun to shift to sugar-free flavored seltzer waters, a product that Skylark is capable of producing with minimal changes to its facilities and production processes. Based on your knowledge of the core competence-market matrix, which diversification strategy should Skylark pursue?

Question

Quizplus · Accepted Answer

Skylark Sodas wants to use its existing resources and capabilities (the ability to produce sugary carbonated beverages) to attack an emerging market (unsweetened carbonated beverages). This corresponds with the lower-right quadrant of the core competence-market matrix, in which firms redeploy and recombine existing core competencies to compete in markets of the future.

Skylark Sodas Has Been a Market Leader in the Soft