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Anton [14]
3 years ago
8

When diversification combines two businesses in different industrial sectors, the key determinant of whether the diversification

creates value is whether the diversification?
Business
1 answer:
Anton [14]3 years ago
4 0
, the key determinant of whether the diversification creates value would be: whether the diversification <span>enhances the competitive advantage of either or both of the two businesses

Here is an example of business combination in different sectors that create a value.

Let's say that a mobile manufacturer called company x (from electronic sector) combines its-self with an animation company (from entertainment sector).

Company x could obtain value from this combination by rewarding free movie/tv shows subscription for every mobile phone that they sold. By doing this, the sales in both sectors will be increased

</span>
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