Which diversification strategy is based on the idea that the company creates value by applying the distinctive competencies it developed in one line of business to another business activity?
A) A technology acquisition strategy
B) Related diversification
C) A restructuring strategy
D) Total diversification
E) A taper diversification strategy

Question

Quizplus · Accepted Answer

Related diversification involves expanding into businesses that are related to the company's current operations, such as applying the same skills and competencies to a new product line or market. The goal is to create synergy between the existing and new businesses and generate value through shared resources and knowledge.

Which Diversification Strategy Is Based on the Idea That the Company