The professor talks about two ways a company can diversify. The first way is to use the existing technology to develop a new product. For example, a company that makes television can produce computer monitors because making these two products needs similar technologies. So the company uses its existing resources to make monitor so as to reach new customers. Another way is by appealing to its existing customers. Customers have other needs. The company can fulfill their needs with different products. For example a company that sells skis can make ski jackets. Because customers with skis do winter sports, they definitely need to wear ski jackets. And they are more likely to buy the ski jackets with the familiar company’s name.
A sample Answer to this speaking in text:
The professor talks about two ways a company can diversify. The first way is to use the existing technology to develop a new product. For example, a company that makes television can produce computer monitors because making these two products needs similar technologies. So the company uses its existing resources to make monitor so as to reach new customers. Another way is by appealing to its existing customers. Customers have other needs. The company can fulfill their needs with different products. For example a company that sells skis can make ski jackets. Because customers with skis do winter sports, they definitely need to wear ski jackets. And they are more likely to buy the ski jackets with the familiar company’s name.