Question

Pearla, a company specialized in high end and expensive ladies

watches, have been thinking about expanding its business. A lot of
consultants have suggested diversification as an approach. Explain
how

Answer 1

Pearla, a high-end ladies' watch company, should consider diversification to expand its business successfully.

Step-by-step explanation:

Diversification involves expanding into new products or markets to reduce risk and increase overall business growth. For Pearla, a company known for high-end ladies' watches, diversification could entail introducing complementary products like jewelry or accessories, targeting the same affluent customer base. Alternatively, Pearla could explore entering new markets, either geographically or demographically. This strategy not only broadens the product portfolio but also mitigates risks associated with relying solely on one product line. Diversification aligns with Pearla's upscale image, offering customers a complete luxury experience and ensuring sustained growth in a competitive market.