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23 June, 12:08

Delux Technologies makes and sells only one product, a high-quality processor for mainframe computers. Delux was recently approached by Imagination Station, a large computer manufacturer, about purchasing their company. Imagination Station is engaging in a. related diversification, b. focused offerentiation c. related diversification d. vertical integratione. differentiation

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  1. 23 June, 15:48
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    d. vertical integration

    Explanation:

    The strategy used by "Imagination Station" above is an example of "vertical integration." This is a type of strategy that allows a company to have control over its production steps.

    Since Imagination Station manufactures computers, it wants to control its own supply of processor by trying to purchase Deluxe Technology. Having full control of supplying its own processors would mean an increase in the company's revenue because they have the ultimate power to reduce their cost.

    So, this explains the answer.
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