Most companies favor related diversification strategies in order to exploit common use of a well-known brand name.

Question

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Related diversification strategies allow companies to use a well-known brand name to expand into related product or service categories, which can lead to increased brand recognition and brand loyalty among consumers. This is often preferred over unrelated diversification strategies that have less synergy between business units and may dilute the brand's identity and reputation.

Most Companies Favor Related Diversification Strategies in Order to Exploit