Businesses are said to be "related" when Copyright by Glo-Bus Software, Inc. Copying, distributing, or 3rd party website posting isexpressly prohibited and constitutes copyright violation. they possess competitively valuable cross-business value-chain matchups. they have common suppliers and common customers. they possess the same competitively valuable resources and capabilities and thus can pursue the same market opportunities. their products exhibit strategic fit, resource fit, and industry attractiveness fit. they possess industry attractiveness fit, risk avoidance fit, and ability-to-compete fit. Conving redistributing or website posting is expressly prohibited and constitutes copyright violation CHOOSING THE DIVERSIFICATION PATH: RELATED VS. UNRELATED BUSINESSES CORE CONCEPT Once a company decides to diversify, its first big strategy decision is whether to diversify into related businesses, unrelated businesses, or some mix of both (see Figure 8.2). Businesses are said to be related when their value chains possess competitively valuable cross-business relationships that present opportunities for the businesses to perform better under the same corporate umbrella than they could by operating as stand-alone entities. The big appeal of related diversification is to build shareholder value by leveraging these cross-business relationships into competitive advantage, thus allowing the company as a whole to perform better than just the sum of its individual businesses. Businesses are said to be unrelated when the activities that compose their respective value chains are so dissimilar that no competitively valuable cross-business Related businesses possess competitively valuable cross-business value chain matchups. Unrelated businesses have dissimilar value chains containing no competitively useful cross- business relationships.