What makes related diversification an attractive strategy is the ability to broaden the company's product line. the opportunity to convert cross-business strategic fits into competitive advantages over business rivals whose operations don't offer comparable strategic fit benefits. the potential for improving the stability of the company's financial performance. the ability to serve a broader spectrum of buyer needs. the added capability it provides in overcoming the barriers to entering foreign markets.

Question

Sanford

Business

29 October, 16:20

What makes related diversification an attractive strategy is the ability to broaden the company's product line. the opportunity to convert cross-business strategic fits into competitive advantages over business rivals whose operations don't offer comparable strategic fit benefits. the potential for improving the stability of the company's financial performance. the ability to serve a broader spectrum of buyer needs. the added capability it provides in overcoming the barriers to entering foreign markets.

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Konnor Pratt · Answer 1

the opportunity to convert cross business strategic fits into competitive advantages over business rivals whose operations don't offer comparable strategic fit benefits

Explanation:

Related diversification refers to the concept wherein a company expands it's operations into those product lines which are somewhat related to it's pre existing product offerings.

Strategic fit refers to the an organization's matching of it's resources and capabilities with external environment opportunities and threats.

Related diversification leads to a business using it's strategic fit across related businesses which leads to a competitive edge over the competitors whose operations lack effective strategic fit benefits.