Question

Groundswell Industries, a U.S.-based large conglomerate, competes in the hospitality, education, telecommunications, entertainment, airlines, and chemical industries. It currently operates in about 30 nations, and is planning to expand its portfolio by investing in rapidly developing countries. Which of the following strategies is Groundswell Industries pursuing?

(A) zone pricing
(B) niche marketing
(C) product-market diversification strategy
(D) process diversification strategy

Answer 1

Answer: Option C

Explanation: In simple words, diversification refers to allocating capital in such a way that the risk of of loosing it due to one particular asset reduces.

In the given case, Groundswell is product- market diversification as they are investing their capital in different products and different countries. Thus reduces their risk exposure overall.

Hence from the above we can say that the correct option is C.