The--------------------- diversification strategy creates value in two ways. First,since the core competence has
Already been developed in one business,the firm does not have to allocate resources to develop it. Second,since the resource is intangible,competitors cannot easily imitate it.
A)related constrained
B)unrelated
C)related linked
D)dominant business

Question

Quizplus · Accepted Answer

Related linked diversification strategy allows companies to leverage their core competencies across multiple businesses. This creates value in two ways. Firstly, since the firm has already developed a core competency in one business, it does not have to allocate resources to develop it in another business. Secondly, since the resource is intangible, competitors cannot easily imitate it. This helps in creating a competitive advantage and generating economic benefits for the firm.

The--------------------- Diversification Strategy Creates Value in Two Ways