The _________________diversification strategy creates value in two ways. First, since the core competence has already been developed in one business, the firm does not have to allocate resources to develop it. Second, since the resource is intangible, competitors cannot easily imitate it.
A) related constrained
B) unrelated
C) related linked
D) dominant business

Question

Quizplus · Accepted Answer

The related linked diversification strategy creates value by sharing or transferring resources, such as technology, marketing, or management expertise, among businesses that are related in some way. This strategy allows a firm to leverage its existing core competencies and expertise across multiple businesses. However, the businesses are not necessarily related to each other, which could limit the potential synergies and create challenges in coordinating and integrating the different businesses. Therefore, related linked diversification strategy is the best choice for the given explanation.

The _________________Diversification Strategy Creates Value in Two Ways