Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e
by Fred R. David, Forest R. David
Diversification Strategies
The two general types of diversification strategies are related diversification and unrelated diversification. Businesses are said to be related when their value chains possess competitively valuable cross-business strategic fits; businesses are said to be unrelated when their value chains are so dissimilar that no competitively valuable cross-business relationships exist.11 Most companies favor related diversification strategies to capitalize on synergies as follows:
Transferring competitively valuable expertise, technological know-how, or other capabilities from one business to another
Combining the related activities of separate businesses into a single operation to achieve lower costs
Exploiting common use of a ...
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