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Is it essential for related diversification to be based on similar products or services? The more similar these products or services are, the more related

Is it essential for related diversification to be based on similar products or services? The more similar these products or services are, the more related is the firms diversification strategy. Will firms that exploit core competencies in their diversification strategies always produce new products or services that are similar to existing businesses product other? Why or why not?

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