Which of the following explains why related diversification is considered to involve a lower level of risk the unrelated diversification?
A) It achieves a more balanced portfolio.
B) It focuses on existing products and markets.
C) It utilises the skills of alliance partners.
D) It leverages existing strategic capability.

Question

Quizplus · Accepted Answer

Related diversification leverages existing strategic capabilities, allowing a company to use its current resources and expertise, which reduces risk compared to entering entirely new markets or industries.

Which of the Following Explains Why Related Diversification Is Considered