BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is horizontal diversifivcation strategy
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when company would want to increase the variety of its manufactured products
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adding variety in different sector
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Having to diversify because request by its regular clients
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Explanation:
Detailed explanation-1: -a growth strategy in which a company seeks to add to its existing lines new products that will appeal to its existing customers. See: Concentric Diversification Conglomerate Diversification.
Detailed explanation-2: -Because shoes are different products than shirts, bottoms or dresses, this is an example of horizontal diversification, as the same customers who purchase the company’s clothing might be inclined to also purchase shoes from their stores.
Detailed explanation-3: -There are three types of diversification: concentric, horizontal, and conglomerate.
Detailed explanation-4: -There are two types of horizontal diversification – concentric and conglomerate – which we’ll dive into later on.
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