Diversification ought to be considered when a
A. company has run out of ways to achieve a distinctive competence in its present business.
B. company is under pressure to create a more attractive and cost-efficient value chain.
C. company lacks sustainable competitive advantage in its present business.
D. company's profits are being squeezed and it needs to increase its net profit margins and return on investment.
E. company begins to encounter diminishing growth prospects in its mainstay business.
Answer: B
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