Firms use related diversification strategies in order to:
A) Horizontally integrate the firm's operations and processes.
B) Increase revenue from the dominant business of the firm.
C) Benefit from economies of scale and scope.
D) Improve the chances of being acquired by a similar firm.

Question

Quizplus · Accepted Answer

The rationale behind related diversification is to benefit from economies of scale and scope. It is not horizontally integrating here because processes are involved in vertical integration more so than horizontal.

Firms Use Related Diversification Strategies in Order To