Greyzone, a company that creates customized furniture, is based in Terrania, but is looking to enter other countries as well. The company identifies the country of Nyevka as a good option, as the entry barriers to new companies are low. Which of the following would most indicate that Greyzone is following a diversification strategy?

Question

Business

Jazmine Bauer

21 November, 17:47

Greyzone, a company that creates customized furniture, is based in Terrania, but is looking to enter other countries as well. The company identifies the country of Nyevka as a good option, as the entry barriers to new companies are low. Which of the following would most indicate that Greyzone is following a diversification strategy?

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Answers (1)

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Yaritza Marquez · Answer 1

Noting that Nyevka lacks well-established suppliers of office equipment, Greyzone begins to supply these products.

Explanation:

Diversification is the process by which a company increase its product offerings.

Greystone is into production of furniture, and is looking at the possibility of beginning operations in Nyevka.

If Greystone notes that Nyevka lacks well-established suppliers of office equipment and begins to supply these products, it is diversifying its product base.