Walt Disney Company and Johnson & Johnson are examples of companies that have successfully used related diversification to create value by ________________.
A) sharing activities
B) sharing activities and transferring core competencies
C) transferring core competencies
D) efficient internal capital allocation and restructuring

Question

Quizplus · Accepted Answer

Both Walt Disney Company and Johnson & Johnson have used related diversification to share activities and transfer core competencies. For example, Walt Disney Company has leveraged its expertise in creating and marketing high-quality content across its different business units to create a cohesive brand image and maximize the value of its intellectual property. Similarly, Johnson & Johnson has used its core competencies in research and development and supply chain management to expand into new product categories within healthcare. By sharing activities and transferring core competencies, both companies have been able to create value and achieve sustainable competitive advantages.

Walt Disney Company and Johnson & Johnson Are Examples of Companies