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kotykmax [81]
3 years ago
7

Discuss how firms can benefit from (1) related diversification and also can benefit from (2) unrelated diversification. Discuss

some of the key concepts that can explain firm success or firm failure from selecting one or the other diversification strategy.Discuss how firms can benefit from (1) related diversification and also can benefit from (2) unrelated diversification. Discuss some of the key concepts that can explain firm success or firm failure from selecting one or the other diversification strategy.
Business
1 answer:
igor_vitrenko [27]3 years ago
6 0

Answer:

Benefits from related & unrelated diversification.

Explanation:

Firms' benefit(s) from related diversification :

  • Building & developing market power - By sharing the  related diversification going on in entire industry.
  • Sharing activities & market linkages with other businesses - Associated diversification implies forward & backward linkages.

Firms' benefit(s) from unrelated diversification :

  • Leveraging & enhancing different core competencies, USP - By Focusing on self paced unique diversification
  • Creating a different ostentation brand - Creating a strong brand, capable of becoming a market leader, rather than market follower

Key concepts explaining firm success or failure from either diversification are implicit within above explanation.

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Explanation:

<em>Purchased $190,000 of store equipment, paying $51,000 in cash and agreeing to Paid the entire $139,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded. pay the difference within 90 days. that make it a way to create sales.</em>

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