In which of the following situations might diversification prove an appropriate strategy?
A) When the market is mature or existing products are at the end of their lifecycles.
B) When the product development of rivals is better than your own.
C) When market share is being lost to other firms in the sector.
D) When the market is experiencing high growth and an influx of new entrants.

Question

Quizplus · Accepted Answer

Diversification is often appropriate when the market is mature or products are at the end of their lifecycles, as it allows a company to explore new opportunities and reduce dependence on declining markets.

In Which of the Following Situations Might Diversification Prove an Appropriate