Question

Sales of watches among teenagers and 20-somethings are declining rapidly as this age group uses cell-phones, iPods, and other devices to tell time. A company that specializes in selling inexpensive watches to this age group may wish to consider ____ in order to develop new products other than watches.

a.unrelated diversification.

b.backward integration.

c.forward integration.

d.horizontal acquisitions.

Answer 1

a. unrelated diversification.

Step-by-step explanation:

Unrelated diversification -

According to this concept , any company or any business , which can have very high financial condition and high revenues , is favorable for diversification , is referred to as unrelated diversification .

From the scenario of the question,

As there is significant reduction in the demand of watches , and therefore , the company is thinking to develop some products other than watches , to maintain the profit and demand of the product .

Hence , the correct option is a. unrelated diversification .