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larr Previous Question 8 Next Diversifying into related businesses where competitively valuable strategic fit benefits can be captured and turned into a competitive advantage over

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Diversifying into related businesses where competitively valuable strategic fit benefits can be captured and turned into a competitive advantage over business rivals whose operations do not offer comparable strategic-fit benefits
is essential if a diversified company is to pass the value chain test, the profit test, and the resource fit test.
enhances a company's ability to build a valuable portfolio of distinctive competencies, boost its rate of revenue growth, and drive rapid increases in earnings per share.
is what fuels 1+1=3 gains in shareholder value--the necessary outcome for satisfying the better-off test and proving the business merit of a company's diversification effort.
is a diversified company's clearest and best path to global market leadership in those industries where it operates.
is essential if a diversified company is to pass the industry attractiveness test, the competitive advantage text, and the crossbusiness transfer test.
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