When Strategic fit come into existence

Question

When Strategic fit come into existence?

Answer 1

Strategic fit be present whenever one or more activities comprising the value chains of various businesses are sufficiently same as to present opportunities for:

i. Transferring competitively important expertise or technological know-how or other capabilities from one to another business.

ii. Combining the related activities of disconnect businesses into a single operation to get lower costs.

iii. Exploiting general use of a well known brand name.

iv. Cross-business collaboration to make competitively useful resource capabilities and strengths.