The primary source of creating competitive advantage from diversification is to:
A)Share resources and capabilities across businesses
B)Share resources across related businesses only
C)Erect strong barriers to entry around each business
D)Be able to strongly retaliate against any rival's attack

Question

Quizplus · Accepted Answer

Sharing resources and capabilities across businesses allows for economies of scale, increased efficiency, and ultimately lower costs. This can lead to a competitive advantage in the market. Sharing resources across only related businesses may not fully leverage the potential benefits of diversification. Erecting barriers to entry around each business and being able to retaliate against rivals are important strategies but are not the primary source of creating competitive advantage from diversification.

The Primary Source of Creating Competitive Advantage from Diversification Is