Greyzone, a company that creates customized household furniture, is based in Terrania
and is looking to enter other countries as well. The company identifies the country of
Nyevka as a good option because the entry barriers for new companies are low in
Nyevka. Which statement indicates that Greyzone follows a diversification strategy?
A) Greyzone does not modify its products for the Nyevkan market.
B) Greyzone leaves the Terranian market entirely in order to establish itself in the
Nyevkan market with its current products.
C) Noting that Nyevka lacks well-established suppliers of office equipment, Greyzone
begins to manufacture and supply office equipment.
D) Greyzone manufactures furniture in Terrania and ships it to Nyevka without setting
up outlets in Nyevka.
E) Noting that production costs are lower in Nyevka, Greyzone shifts its production
operations entirely to Nyevka.
Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a
renowned electronics company, to sell PineWire products. The deal requires Sonic
Shack to provide PineWire products with superior displays, shelf space, and promotion
compared to competing products. Sonic agrees to these terms as PineWire products
command a huge share in the market. Which of the following types of channel
arrangements do PineWire and Sonic Shack most likely have?
A) administered vertical marketing system
B) corporate vertical marketing system
C) indirect marketing system
D) wholesaler franchise system
E) horizontal marketing system