TL & Co. is following a related-linked diversification strategy, and Soar Inc. is following a related-constrained diversification strategy. How do the two firms differ from each other?
A. Soar Inc. pursues a backward diversification strategy, while TL & Co. pursues a forward diversification strategy.
B. Soar Inc. generates 70 percent of its revenues from its primary business, while TL & Co. generates only 10 percent of its revenues from its primary business.
C. TL & Co. pursues a differentiation strategy, and Soar Inc. pursues a cost-leadership strategy, to gain a competitive advantage.
D. TL & Co. will share fewer common competencies and resources between its various businesses when compared to Soar Inc.
Answer: D
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