At the Beginning of 2001, Peach Computers Competed Exclusively in the Computer

question 51

Multiple Choice

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.
-If no other firm in the computer industry were using a diversification strategy similar to Peach Computers', this diversification strategy could be said to be

• A) rare and costly to duplicate.
• B) rare and less costly to duplicate.
• C) common but costly to duplicate.
• D) common and less costly to duplicate.

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Definitions:

Exposure

The state of being subject to the possibility of being attacked or harmed, either physically or emotionally, or in the context of marketing, the degree to which a target audience sees a promotional message.

Immediate Consequences

The direct and prompt outcomes or effects following an action or decision.

Loss Of Resources

The depletion or diminishing of assets, values, or capabilities, whether tangible or intangible, that were previously available.

Reflective Analysis

An introspective examination of one's own thoughts, feelings, and actions, often to improve understanding or performance.