In a single-product diversification strategy
A) a firm attempts to develop core competencies in a specific market.
B) a firm owns numerous businesses that are linked in some manner.
C) a firm manages several businesses with no reasonable connection.
D) a firm's main focus is on establishing customer recognition and loyalty.

Question

Quizplus · Accepted Answer

In a single-product diversification strategy, a firm focuses on developing core competencies in a specific market. This strategy involves expanding the existing product line by offering new and related products to the existing market. It enables firms to leverage their existing strengths and reputation to enter a new market, rather than starting from scratch.

In a Single-Product Diversification Strategy