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Kiku, a company CEO, was asked by the board of directors to justify why related diversification can be an attractive strategy for the company. Kiku

Kiku, a company CEO, was asked by the board of directors to justify why related diversification can be an attractive strategy for the company. Kiku explains to to the board that what makes related diversification an attractive strategy is the potential to more easily hurdle the barriers to entering foreign markets. opportunity to convert the competitive advantage potential into 1 + 1 = 3 gains in shareholder value. potential to stabilize the company's financial performance. potential to escape the power of buyers and suppliers. ability to meet the "what's in it for us?" test. 5

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