Product diversification is a relatively risky expansion strategy because it introduces new products into new markets, unlike other strategies that already have the product or market established.

Question

Quizplus · Accepted Answer

Product diversification involves both introducing new products and entering new markets simultaneously, which is riskier than strategies focusing on either existing products or markets due to the uncertainties in both product acceptance and market dynamics.

Product Diversification Is a Relatively Risky Expansion Strategy Because It