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

question 45

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, Peach Computers' diversification strategy was best characterized as

• A) related-linked diversification.
• B) dominant-business diversification.
• C) single-business diversification.
• D) related-constrained diversification.

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Definitions:

Cutaneous Membrane

The cutaneous membrane refers to the skin, the body's outer covering that protects internal organs and structures.

Inhibiting Release

The process of preventing the secretion or expression of a substance, often referring to hormones or neurotransmitters.

Chemical Mediators

Substances released by cells in the body that regulate physiological functions by mediating cell-to-cell communication.