Zia, the CEO of Indigo Corp

Multiple Choice

Zia, the CEO of Indigo Corp., states that it is essential to diversify the company into new markets and to create new products. She believes that it is important and profitable to tap new customer bases and challenging markets as this experience will help the company grow financially as well as expand its knowledge base on strategic management. Which of the following statements strengthens Zia's belief?

A) Moderate diversification pays off but very high levels of diversification will lead to lower levels of performance.
B) The company will not be able to provide the same value and customer satisfaction when segmented.
C) Diversification will create a loss of revenue if the parent company decides to segment itself to different markets.
D) Diversification will reduce the company's overall cost of producing goods and services.