Examlex

Solved

When an Organization Expands into a Totally New Line of Business

question 95

Multiple Choice

When an organization expands into a totally new line of business, it is implementing a strategy of __________ diversification.


Definitions:

Homogeneous Product

A product that is considered the same across different producers with no differentiation in the eyes of the consumer.

Economies Of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Homogeneous Product

A product that is seen as identical across producers, with no distinct differences from the consumer's perspective, leading to perfect competition.

Barriers To Entry

Obstacles that limit the freedom of potential rivals to enter and compete in an industry or market.

Related Questions