Substitutes for exploiting economies of scope in diversification include
A) growing and developing independent businesses within a diversified firm and vertical integration.
B) vertical integration and strategic alliances.
C) growing and developing independent businesses within a diversified firm and strategic alliances.
D) strategic alliances and multipoint competition.

Question

Quizplus · Accepted Answer

The two substitutes for exploiting economies of scope in diversification are growing and developing independent businesses within a diversified firm and strategic alliances. Vertical integration is not a substitute but rather a strategy to achieve economies of scope. Multipoint competition is not a substitute for economies of scope but rather a result of diversified firms competing in multiple markets.

Substitutes for Exploiting Economies of Scope in Diversification Include