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After serving a good number of customers in its home state, Marble Cakes, Inc. has set up business in three other states with additional menu options of cupcakes, donuts, and coffees to generate new customers.
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36 votes
After serving a good number of customers in its home state, Marble Cakes, Inc. has set up business in three other states with additional menu options of cupcakes, donuts, and coffees to generate new customers. This has enabled the company to successfully maintain its corporate strategy. Marble Cakes, Inc. is engaging in which of the following? Select one.

a)Vertical integration
b)Horizontal diversification
c)Horizontal specialization
d)Vertical specialization

User Szeitlin
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25 votes
25 votes

Answer:

b)Horizontal diversification

Step-by-step explanation:

Horizontal diversification is defined as the process by which a business starts providing a product that is unrelated to its previous products supplied.

However the market is a similar one.

In the given scenario Marble Cakes, Inc. has set up business in three other states with additional menu options of cupcakes, donuts, and coffees to generate new customers.

The new set of products are completely different from the one initially supplied, but sales is in similar market as before.

User Show
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