Despite the heterogeneity of the goods and services supplied by LVMH (e.g.leather bags and shoes,wine and spirits,fashion clothing,jewelry and watches),we can consider LVMH's diversification to be into strategically-related industries because:
A)Most of its products are sold at airport,tax-free shops
B)LVMH benefits from massive economies of scope through centralizing common functions such as purchasing,R&D,manufacturing,and marketing
C)LVMH's portfolio balances mature,cash-generating businesses with growing,cash-using businesses
D)The different business all require global marketing to high income consumers,hence draw upon similar management capabilities.

Question

Quizplus · Accepted Answer

LVMH's different businesses all require global marketing to high income consumers, hence draw upon similar management capabilities.

Despite the Heterogeneity of the Goods and Services Supplied by LVMH