Question

Your SWOT analysis reveals no obvious options for growth with your current product lines. So you decide to use some retained earnings the firm has been saving and launch new product lines. After careful analysis you decide to launch a line of battery chargers and, separately, a line of ceiling fans. Which corporate-level strategy are you pursuing

Answer 1

Unrelated diversification.

Step-by-step explanation:

Analyzing the information above, it is correct to say that the company is using the corporate level strategy of unrelated diversification.

This strategy occurs when a company decides to expand its product line by diversifying products that are not related to each other, as is the case above, where it is intended to launch a line of battery chargers and separately a line of ceiling fans. As these products do not correlate, the company is looking to start its activities in different types of market, which can be configured as a positive strategy for market gain and greater profitability for the company.