Compared to diversification that is grounded in intangible resources, diversification based on financial resources only is more visible to competitors and thus more imitable and less likely to create value on a long-term basis.

Question

Quizplus · Accepted Answer

Diversification based on financial resources is more transparent and easier for competitors to replicate, whereas intangible resources like brand reputation or proprietary technology are less visible and harder to imitate, potentially leading to sustainable competitive advantage.

Compared to Diversification That Is Grounded in Intangible Resources, Diversification