Which of the following is an example of growth by diversification?
A) a company introducing its existing products in a new market
B) a company introducing new product category in a new market
C) a company increases its product line in an existing market
D) a company introducing a new product category in an existing market
E) a company integrates backward to cut costs

Question

Quizplus · Accepted Answer

Growth by diversification refers to a company expanding its business by adding new product categories or entering into new markets. Option B is an example of this type of growth as the company is introducing a new product category in a new market. Options A, C, and D refer to growth by market penetration or expansion while option E refers to vertical integration for cost-cutting purposes.

Which of the Following Is an Example of Growth by Diversification