When one or more components of a company's value chain are applicable to a wide variety of industrial and commercial situations, which of the following strategies should a company pursue?
A) Unrelated diversification
B) Related diversification
C) A focus strategy
D) Taper integration
E) Backward integration

Question

Quizplus · Accepted Answer

Related diversification allows a company to apply components of its value chain to a variety of industries, while still maintaining some synergy among its different business units. This strategy can lead to economies of scope, increased market power, and reduced business risk. Unrelated diversification, focus strategy, taper integration, and backward integration may not be as effective in this situation.

When One or More Components of a Company's Value Chain