one advantage of product innovation is that a firm can expand into different product categories. the point of the risk ______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well.

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20-10-2021
Social Studies

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one advantage of product innovation is that a firm can expand into different product categories. the point of the risk ______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well.

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Tundexi Tundexi · Answer 1 · 2021-10-25T12:09:20+02:00

The strategy that ensures that some products will be doing well if other are competing poorly is the Risk diversification strategy.

Basically, term "Diversification" aims to mitigate risk or maximize returns by allocating investment funds different categories.

In a firm, Risk diversification strategy involves strategy of producing variety or categories of product to ensures that its has way of competing in the industry.

Therefore, the strategy helps in a situation whereby if one product fails in the market, some other product from same firm will still be competing in the industry.

In conclusion, the answer is risk diversification strategy because its ensures other product will compete if other fails.

Learn more about Risk diversification strategy here

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