Most companies favor related diversification strategies in order to exploit the common use of a well- known brand name.

Question

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Related diversification involves expanding into industries that are related to the current business, which allows for the use of the existing brand name and other resources. This type of diversification is often favored by companies as it allows them to leverage their existing strengths and knowledge, and potentially create synergies between different business units.

Most Companies Favor Related Diversification Strategies in Order to Exploit