When an organization attempts to grow by merging with or acquiring firms in different but associated industries,the strategy is known as a ________ strategy.
A)related differentiation
B)horizontal integration
C)vertical integration
D)related diversification

Question

Quizplus · Accepted Answer

Related diversification strategy involves expanding a company's operations into industries that are similar to its current business. This can be done by acquiring or merging with firms in different but associated industries. Horizontal integration strategy involves acquiring or merging with firms in the same industry to achieve economies of scale or eliminate competition. Vertical integration strategy involves expanding a company's operations into different phases or stages of the production process in the same industry. Related differentiation strategy involves creating a unique product or service that is different from competitors.

When an Organization Attempts to Grow by Merging with or Acquiring