Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that the
A)products use similar distribution channels.
B)similarity required for sharing core competencies must be in the value chain.
C)target market is the same, even if the products are very different.
D)methods of production are the same.

Question

Quizplus · Accepted Answer

For a core competence to create value and provide a viable basis for synergy among the businesses in a corporation, different businesses in the corporation must be similar in at least one important way related to the core competence. It is not essential that the products or services themselves be similar, but at least one element in the value chain must require similar skills in creating competitive advantage.

Sharing Core Competencies Is One of the Primary Potential Advantages