For the past two decades, Mama Lucia's has focused only on producing various pasta sauces in jars. The company is now considering entering the market for jarred pickles and olives as well. If Mama Lucia's decides to enter this arena, it would be using a _____ strategy.

Question

Quizplus · Accepted Answer

A concentric diversification strategy involves moving into new businesses (jars of pickles and olives) that are related to the company's original core business (jars of pasta sauce). Because the businesses are related, the products, markets, technologies, or capabilities used in one business can be transferred to another.

For the Past Two Decades, Mama Lucia's Has Focused Only