Final answer:
The initial decision by Dell Computer to start selling LCD wide-screen TVs is an example of business diversification, which helped the company expand its product portfolio and tap into new revenue streams.
Step-by-step explanation:
The initial decision by Dell Computer to start selling LCD wide-screen TVs is an example of business diversification.
Business diversification refers to the strategy of entering new markets or product categories in order to reduce risk and expand business opportunities.
By entering the TV market, Dell was able to leverage its brand and distribution channels to reach new customers and generate additional revenue.
Furthermore, diversification allows companies to take advantage of synergies between different products or industries.
In the case of Dell, the company had existing relationships with suppliers and manufacturers in the electronics industry, which made it easier for them to enter the TV market.
This diversification strategy helped Dell to adapt to changing consumer preferences and stay competitive in the rapidly evolving technology market.
Overall, Dell's decision to enter the TV market demonstrates a strategic business move to expand its product portfolio and tap into new revenue streams.