A beer distributor, concerned about increasing regulation of alcoholic beverages, decides to start a new business distributing children's toys. This company seems to be pursuing

Question

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The beer distributor is pursuing diversification, as they are entering a completely new industry (toys) that is unrelated to their current business (alcoholic beverages). Market development involves expanding into new markets with existing products, product development involves creating new products for existing markets, and market penetration involves increasing sales in existing markets with existing products.

A Beer Distributor, Concerned About Increasing Regulation of Alcoholic Beverages