Case for Diversifying within Related Businesses
Illustrates the case for Diversifying within Related Businesses?
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The Case for Diversifying into Related Businesses:
1. A related diversification strategy involves making the organization around businesses whose value chains possess competitively useful strategic fits.
2. Related businesses possess competitively useful strategic fits and related value chain activities seems at strategic fits and related businesses.
3. Related diversification thus has strategic plea from many angles. It permits a firm to harvest the competitive benefit, lower costs, advantage of skills transfer, common brand names, and/or powerful competitive capabilities and still spread investor risks over a large business base.
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