Question

Maria's Mart is a small store located along a major interstate highway that sells gas and diesel, food, souvenirs, DVD movies, and a wide variety of other items. There is even a café inside the store. Maria's Mart is an example of a diversification strategy.

True/False

Answer 1

Maria's Mart is an example of a diversification strategy, as the store offers various products and houses a café, spreading risks and attracting different customer needs.

Step-by-step explanation:

True, Maria's Mart is an example of a diversification strategy. This strategy involves a business expanding its range of products or services, to spread out its potential risks and opportunities for growth. By selling a mix of goods including gas and diesel, food, souvenirs, DVD movies, and housing a café, Maria's Mart is effectively differentiating its offerings to cater to a broad range of customer needs and preferences. Similar to other models like franchises and businesses in a monopolistic competition, the store's variety of products creates product differentiation, which is a common characteristic in monopolistically competitive markets where many firms offer various goods that are not identical.