Explain the two types of related diversification strategy with the help of examples.

What will be an ideal response?


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There are two types of related diversification strategy: related-constrained and related-linked.
When executives consider business opportunities only where they can leverage their existing competencies and resources, the firm is using related-constrained diversification. The choices of alternative business activities are limited-constrained-by the fact that they need to be related through common resources, capabilities, and competencies. ExxonMobil's diversification move into natural gas is an example of related-constrained diversification. 
If executives consider new business activities that share only a limited number of linkages, the firm is using related-linked diversification. For example, Amazon began business by selling only one product: books. Over time, it expanded into CDs and later gradually leveraged its online retailing capabilities into a wide array of product offerings. As the world's largest online retailer, and given the need to build huge data centers to service its peak holiday demand, Amazon decided to leverage spare capacity into cloud commuting. Amazon also offers a variety of consumer electronics as well as proprietary content that can be streamed via the internet and is free for its Prime service. 

Business

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If payment is due by the end of the month in which the sale is made, the invoice terms are expressed as n/30

Indicate whether the statement is true or false

Business

Saul Goodman represents several clients and bills at $400 per hour

He forgot to record the time it took to complete each activity, but he knows his eight hour day was spent representing three clients involved in one high profile case. He also remembers that Walt told him once that his learning curve percentage was 85%. How much more should Saul bill each of his three clients? What will be an ideal response?

Business

Read the t statistic from the t distribution table and choose the correct answer. For a one-tailed test (lower tail), using a sample size of 14, and at the 5% level of significance, t =

A. 1.771. B. 1.761. C. -1.771. D. -1.762.

Business

Before polling the students in Scion School of Business, a researcher divides all the current students into groups based on their class standing, such as freshman, sophomores, and so on. Then, she randomly draws a sample of 50 students from each of these groups to create a representative sample of the entire student body in the school. Which of the following sampling methods is the researcher practicing?

A. Snowball sampling B. Simple random sampling C. Systematic random sampling D. Stratified random sampling E. Cluster sampling

Business