If McDonald's Canada decided to diversify its business offerings by buying out and operating a company like Red Lobster,their marketing strategy would be.
A)market penetration.
B)market development.
C)related diversification.
D)product development.

Question

Quizplus · Accepted Answer

Related Diversification is when a company expands its business by acquiring or investing in another company that is related to its existing product line or business operations. As McDonald's primary business is fast food, acquiring a seafood chain like Red Lobster would be related diversification. McDonald's can leverage their existing infrastructure, resources and customer base to expand its product offerings and reach new customers. It also allows them to capitalize on the strengths of Red Lobster's brand and operations. Therefore, the best answer would be C) Related Diversification.

If McDonald's Canada Decided to Diversify Its Business Offerings by Buying