Concentric diversification may be undertaken as a grand strategy because the acquiring firm wishes to:
A) Acquire an investment opportunity
B) Sell off unneeded assets quickly
C) Balance or fill out its product line
D) Trim its product line

Question

Quizplus · Accepted Answer

Concentric diversification involves adding new products or services that are related to the existing products or services. The main reason behind undertaking this strategy is to balance or fill out the product line. This helps the acquiring firm to spread its risks and boost its competitive advantage. Options A and B are not relevant to this strategy, and option D refers to a different strategy altogether.

Concentric Diversification May Be Undertaken as a Grand Strategy Because