What Makes Related Diversification an Attractive Strategy

question 2

Multiple Choice

What makes related diversification an attractive strategy?

• A) The ability to broaden the company's product line.
• B) The opportunity to convert cross-business strategic fits into competitive advantages over business rivals whose operations don't offer comparable strategic fit benefits.
• C) The potential for improving the stability of the company's financial performance.
• D) The ability to serve a broader spectrum of buyer needs.
• E) The added capability it provides in overcoming the barriers to entering foreign markets.

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Definitions:

Long Lead Time

The extended duration between the initiation and completion of a process, often used in the context of manufacturing or supply chain management.

Wasted Coverage

Situations where marketing efforts reach individuals outside the target market, resulting in inefficiency and wasted resources.

Media Divergence

The trend of media platforms and outlets becoming more varied and specialized, catering to niche audiences and interests.

Advertising Spillover

The effect that advertising for one product or brand has on another due to overlap in customer base or market.