Sales of watches among teenagers and twenty-somethings are declining rapidly as this age group uses cellphones, iPods, and other devices to tell time. A company that specializes in selling inexpensive watches to this age group may wish to consider ____ in order to develop new products other than watches.

Question

Quizplus · Accepted Answer

Unrelated diversification would allow the company to expand into different product lines beyond watches, which would help to offset the decline in watch sales among teenagers and twenty-somethings. The other options (backward integration, forward integration, and horizontal acquisitions) are more focused on acquiring or integrating with existing suppliers, distributors, or competitors in the same industry, which would not necessarily address the decline in watch sales among this age group.

Sales of Watches Among Teenagers and Twenty-Somethings Are Declining Rapidly