Which of the following is an example of a diversification strategy?
A)A firm introduces its current products to a new set of customers.
B)A company markets an innovative product by using its existing network.
C)A firm introduces a new product to a segment that is currently not served.
D)A company exports its products to a new geographical location.
E)A firm intensifies its marketing activities to increase the sale of its current offerings.

Question

Quizplus · Accepted Answer

Introducing a new product to a segment that is currently not served is an example of a diversification strategy where the firm expands into a new market or industry that it hasn't previously tapped into. This approach is often used to minimize risk and spread the company's investments across different markets or product lines. The other options are better examples of market penetration or market development strategies, where the firm targets existing markets or customers with its current products.

Which of the Following Is an Example of a Diversification