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
E) concentration

Question

Quizplus · Accepted Answer

When an organization attempts to grow by merging with or acquiring firms in different but associated industries, the strategy is known as related diversification. This strategy allows the organization to expand its operations and minimize risk by diversifying its products and services while leveraging its existing strengths and resources. Horizontal integration involves merging with or acquiring firms in the same industry, vertical integration involves merging with or acquiring firms at different stages of the supply chain, and related differentiation and concentration strategies focus on differentiating products or services or concentrating on a specific niche market rather than diversifying across different industries.

When an Organization Attempts to Grow by Merging with or Acquiring