Consider the following list of strategies. In your view, which of these strategies are examples of potential economies of scope underlying a corporate diversification strategy?

For those strategies that are an economy of scope, which economy of scope are they? For those strategies that are not an economy of scope, why aren’t they?

(a) Tata launches Swach, its water purifier for the Indian market, developed with the help of Tata Chemicals, Tata Autocomp Systems, Tata Consulting Services and other Tata Group companies.

(b) Medtronic, US medical device maker (strongest in pacemakers and spinal treatment), announces acquisition of Ireland-based Covidien (strongest in surgical equipment)

and plans to relocate its headquarters to Ireland to lower corporate tax.

(c) GE Capital announces intent to spin off its retail lending business to focus on its industrial segment with products such as fleet finance, commercial loans and leases.

(d) Robinsons Retail, a leading retailer in the Phillipines, announces the purchase of A.M.

Builders’ Depot. This deal will make available to A.M. Builders’ Depot, a wide range of home improvement products and appliances from Robinsons.

(e) Oracle’s acquisition of PeopleSoft: both are global leaders in business software.

(f) FedEx Corp, a global courier service, announced that its FedEx Express subsidiary has acquired an African courier, Supaswift, with businesses in South Africa and six other countries in order to extend the Fedex network in Africa.

(g) Omron Healthcare, a popular maker of medical devices for use at home, announced the launch of its latest pain relief device, the Pain Relief Pro, which now comes with a massage feature and more pain modes (arm, lower back, leg, foot and joint).

(h) InternetQ, a global mobile marketing services company announces the acquisition of Interacel, a growing mobile service provider in Latin America. The merger is expected to enable InternetQ to upsell its mobile marketing, Akazoo music streaming and Minimob smart advertising services directly to mobile network operators and media brands in Latin America.

(i) A venture capital firm invests in a firm in the biotechnology industry and a firm in the entertainment industry.

(j) Another venture capital firm invests in two firms in the biotechnology industry.