RON Inc.is a company that manufactures home appliances.The company has established a wide retail network to sell its products.As part of its growth strategy, the company launches a new subsidiary that manufactures office furniture.This division is expected to attract a new range of customers.In this scenario, the company applies the strategy of:

Question

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The company is applying the strategy of diversification by launching a new subsidiary in a different industry (office furniture) to attract a new range of customers, which is different from its core business of home appliances.

RON IncIs a Company That Manufactures Home Appliances