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Which of the following is an example of growth by diversification?
  • a)
    a company introducing its existing products in a new market
  • b)
    a company introducing new product category in a new market
  • c)
    a company increases its product line in an existing market
  • d)
    a company introducing a new product category in an existing market
Correct answer is option 'B'. Can you explain this answer?
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Which of the following is an example of growth by diversification?a)a ...
Growth by diversification refers to the expansion of the business into new products, services, or a market that are unrelated to the company's current offerings.
For example, a company that specializes in manufacturing and selling casual shoes decided to expand its business by diversifying into the production of shirts and jackets, by doing so the company expanded to a new product line that is not directly related to a current business line.
This move can help the company to attract customers, increase its market shares, and reduce the risk assigned to relying on a single product line.
Growth by diversification refers to a business strategy in which a company seeks to expand its operations by entering new markets, developing new products or services, or acquiring companies that operate in different industries. The aim of this strategy is to reduce the company's dependence on its existing business and spread its risks across multiple areas.
Diversification can be achieved through various means such as horizontal integration, vertical integration, concentric diversification, and conglomerate diversification.
Hence the correct answer is  a company introducing new product category in a new market
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Which of the following is an example of growth by diversification?a)a company introducing its existing products in a new marketb)a company introducing new product category in a new marketc)a company increases its product line in an existing marketd)a company introducing a new product category in an existing marketCorrect answer is option 'B'. Can you explain this answer?
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Which of the following is an example of growth by diversification?a)a company introducing its existing products in a new marketb)a company introducing new product category in a new marketc)a company increases its product line in an existing marketd)a company introducing a new product category in an existing marketCorrect answer is option 'B'. Can you explain this answer? for UGC NET 2024 is part of UGC NET preparation. The Question and answers have been prepared according to the UGC NET exam syllabus. Information about Which of the following is an example of growth by diversification?a)a company introducing its existing products in a new marketb)a company introducing new product category in a new marketc)a company increases its product line in an existing marketd)a company introducing a new product category in an existing marketCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UGC NET 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is an example of growth by diversification?a)a company introducing its existing products in a new marketb)a company introducing new product category in a new marketc)a company increases its product line in an existing marketd)a company introducing a new product category in an existing marketCorrect answer is option 'B'. Can you explain this answer?.
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