Which of the strategies for expanding sales revenue below presents the most risk for an organization?
A)product development
B)product-market evolution
C)market development
D)market penetration
E)diversification

Question

Quizplus · Accepted Answer

Diversification involves entering a new market or creating a new product that is completely unrelated to the company's current offerings. This presents the most risk because it requires a significant investment of resources and there is no guarantee of success. Additionally, there is a potential for the new venture to dilute the brand and for existing customers to become confused or disenchanted. The other strategies (product development, product-market evolution, market development, and market penetration) all involve building on existing strengths and are generally considered less risky.

Which of the Strategies for Expanding Sales Revenue Below Presents