Google's diversification could lead the firm toward a related linked strategy and give the firm advantages in multipoint competition with competitors such as Facebook and Microsoft (Chapter 6 Strategic Focus).

Question

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Diversification into related industries allows a company to gain advantages in multipoint competition with competitors in those industries. This can lead to a related linked strategy, which is when a company links its different businesses together in some way to gain synergies and competitive advantages. Google's diversification could lead to this strategy and give them an edge in competing with Facebook and Microsoft, who are also diversified in related industries.

Google's Diversification Could Lead the Firm Toward a Related Linked