Answer: A. The company has strong competitive position in its industry and industry growth is sluggish.
Explanation: Diversification is best done from a position of strength, a company should be doing well in its current industry and market before considering diversifying. A company having strong competitive position in its industry and when there is a sluggish growth in that industry, the company can diversified.
Diversification in corporate is a strategy that a company implement to increase market shares and sale volume by introducing new product in another industry and market different from the one they are operating.