Adding a related or complementary product to a corporation's business units is called
A) concentration.
B) horizontal growth.
C) concentric diversification.
D) vertical growth.
E) conglomerate diversification.

Question

Quizplus · Accepted Answer

Concentric diversification is the strategy of adding a related or complementary product or business to a corporation's existing business units. This allows the corporation to achieve synergies and economies of scale by sharing resources and capabilities. Horizontal growth refers to expanding the corporation's existing products or services into new geographic markets or customer segments. Vertical growth involves expanding the corporation's operations either backward into its supply chain or forward into distribution channels. Conglomerate diversification involves adding unrelated businesses to the corporation's portfolio. Concentration involves focusing on the corporation's core business and improving its performance.

Adding a Related or Complementary Product to a Corporation's Business