Capability-based diversification comprises three ways in which capability can be transferred:

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Capability-based diversification involves the transfer of capabilities in three primary ways: from the parent company to a new business, from an old business to a new business, and from a new business back to an old business. This approach leverages existing strengths and competencies across different parts of the organization to create synergies and foster growth.

Capability-Based Diversification Comprises Three Ways in Which Capability Can Be