The degree to which horizontal expansion is desirable depends on the degree to which the new industry is related to a firm's home industry.

Question

Quizplus · Accepted Answer

If the new industry is closely related to the home industry, then horizontal expansion may be desirable as it can lead to synergies and economies of scale. However, if the new industry is unrelated to the home industry, vertical or diversification strategies may be more appropriate.

The Degree to Which Horizontal Expansion Is Desirable Depends on the Degree