Question

Nocturnal Products started as a luxury brand for designer apparel. Soon, the company expanded by launching its own line of premium perfumes, watches, bags, and home furnishings. This expansion allowed the businesses under the company to share a few of the common competencies in products, services, technology, and distribution. Which of the following corporate strategies is Nocturnal pursuing in this scenario?A. niche marketing strategyB. related-linked strategyC. related-constrained strategyD. taper integration strategy

Answer 1

Answer:

B) related-linked strategy

Explanation:

Related linked strategies have the purpose of creating value for the organization by exploiting and developing economies of scope within the company. This means that the company will try to save money by transferring its competencies within one product line.

In this case the product line is Nocturnal Products which has expanded to include designer apparel, perfumes, watches, bags and home furnishing. The company hopes to transfer the competencies that designer apparel has to the rest of the products.