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A Company Can Best Accomplish Diversification into New Industries By

Question 2

Multiple Choice

A company can best accomplish diversification into new industries by:


A) outsourcing most of the value chain activities that have to be performed in the target business/industry.
B) acquiring a company already operating in the target industry,creating a new business subsidiary to compete in the target industry,or forming a joint venture with another company to enter the target industry.
C) integrating forward or backward into the target industry.
D) shifting from a strategic group comprised mostly of single-business companies to a strategic group comprised of diversified companies.
E) employing an offensive strategy with new product innovation as its centerpiece.

Correct Answer:

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