According to the Grand Strategy Matrix, when a Quadrant I firm is too heavily committed to a single product, then concentric diversification may reduce the risks associated with a narrow product line.

Question

Quizplus · Accepted Answer

The Grand Strategy Matrix suggests that firms in Quadrant I (which have high market growth rate and high market share) must adopt a diversification strategy to reduce risks associated with a narrow product line. If a Quadrant I firm is too heavily committed to a single product, then concentric diversification may be a suitable strategy to consider. Concentric diversification involves adding products or services that are related to the existing product line, which can lead to synergies and operational efficiencies. Therefore, statement A is correct.

According to the Grand Strategy Matrix, When a Quadrant I