By adding new product lines beyond its core business of computer software,like the Zune MP3 player and XBox 360 game system,Microsoft primarily benefits by
A) keeping up in a market where sales come mostly from new products.
B) satisfying the changing needs of the technological research staff.
C) avoiding market saturation from products that have just been introduced to the market.
D) creating diversification and reducing risk.
E) spreading out production costs.

Question

Quizplus · Accepted Answer

By creating new product lines beyond their core business, Microsoft is creating diversification in their portfolio, which helps reduce the risk of relying solely on one product or market. This also allows them to explore new markets and potentially increase their revenue streams.

By Adding New Product Lines Beyond Its Core Business of Computer