Diversification and Differentiation Concepts
CMAT 2022 · Innovation & Entrepreneurship · Easy · Business Strategy
Given below are two statements: Statement I: 'Diversification' means adding new lines of business. Statement II: Differentiation means creating specialized products that gain competitive advantage with a particular segment of the market.
In light of the above statements, choose the correct answer from the options given below:
- A.
Both Statement I and Statement II are true
- B.
Both Statement I and Statement II are false
- C.
Statement I is true but Statement II is false
- D.
Statement I is false but Statement II is true
A
Explanation
Diversification refers to entering into new product lines or markets outside existing operations. Differentiation refers to offering unique features/products to gain competitive advantage in a targeted market segment. Both statements are accurate.
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