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At the beginning of 2001, Peach Computers competed exclusively in the computer industry and generated approximately 96% of its revenue from the sales of computers and computer-related software and approximately 4% of its revenues were generated from sales of other peripherals. Further, of these revenues, 60% was from sales in the U.S., 30% was from sales in Europe, 7% was from sales in Asia and 3% was from other areas. In October 2001, Peach entered the personal electronics industry by introducing a new MP3 player known as the PeachPit. In developing and selling the PeachPit, Peach Computers was able to use many of the same R&D facilities, suppliers, production facilities, and distribution and sales outlets as the computers and software Peach Computers traditionally sold. By 2003, the PeachPit MP3 Player, accessories for the unit, and sales of songs on Peach Computers' NectarTunes website accounted for 35% of Peach Computers' revenues.
-One of the limits of the economies of scope that Peach Computers is leveraging in its diversification strategy is
Inguinal Canal
A passageway in the abdominal wall through which structures such as the spermatic cord in males and the round ligament in females pass.
Spermatic Cord
A bundle of fibers and tissues in males that runs from the deep inguinal ring down to each testicle, containing blood vessels, nerves, and the vas deferens.
Gubernaculum
A fibrous cord that guides the descent of the testes in males or the ovaries in females during fetal development.
Dihydrotestosterone
A hormone generated from testosterone, playing a key role in the development of male characteristics and reproductive tissues.
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