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

question 65

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.
-In 2001, if Peach Computers did not want to employ a diversification strategy to enter the personal electronics industry, it could use which substitute for diversification?

• A) backward vertical integration
• B) product differentiation
• C) strategic alliances
• D) forward vertical integration

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Definitions:

Supply of Candidates

The availability of individuals qualified or willing to take up specific job roles or positions.

Power Distance

As a cultural value, the degree to which members of a society expect, and should expect, power to be distributed unequally.

Cultural Minorities

Groups within a society that retain distinct ethnic, religious, or cultural characteristics that differ from the majority population.

Team Performance

The efficiency and success of a group of individuals working together towards a common goal, measured by various metrics depending on the context.