_________________ diversification refers to a strategy of adding related or similar product/service lines to the existing core business, either through acquisition of competitors or through the internal development of new products or services.
A) Backward
B) Forward
C) Horizontal
D) Unrelated
E) Vertical

Question

Quizplus · Accepted Answer

Horizontal diversification refers to adding new products or services that are related or similar to the existing core business. This can be done through acquiring competitors or developing new products/services internally. Backward diversification refers to adding activities that are closer to the source of raw materials or production processes, while forward diversification refers to adding activities that are closer to customers. Unrelated diversification refers to adding product/service lines that are completely unrelated to the existing core business. Vertical diversification refers to adding activities that are at different stages of the value chain, either backward or forward.

_________________ Diversification Refers to a Strategy of Adding Related or Similar