DS & Co.is following a related-linked diversification strategy, and GreenWing Inc.is following a related-constrained diversification strategy.How do the two firms differ from each other?
A) GreenWing Inc. generates 70 percent of its revenues from its primary business, while DS & Co. generates only 10 percent of its revenues from its primary business.
B) GreenWing Inc. pursues a backward diversification strategy, while DS & Co. pursues a forward diversification strategy.
C) DS & Co. will share fewer common competencies and resources between its various businesses when compared to GreenWing Inc.
D) DS & Co. pursues a differentiation strategy, and GreenWing Inc. pursues a cost leadership strategy, to gain a competitive advantage.

Question

Quizplus · Accepted Answer

DS & Co. will share fewer common competencies and resources between its various businesses when compared to GreenWing. In related-linked diversification, only some businesses share competencies in products, services, technology, or distribution. In related-constrained diversification, all businesses share competencies in products, services, technology, or distribution.

DS & CoIs Following a Related-Linked Diversification Strategy, and GreenWing Inc