[solved] Diversifying into related businesses where competitively valuable strategic fit benefits can be captured
is essential if a diversified company is to pass the value chain test, accelerate its growth in revenues and earnings, and build long-term value for shareholders.
is the key to realizing the highest possible economies of scope and realizing a significantly higher return on capital investment.
puts sister businesses in position to perform better financially as part of the same company than they could have performed as independent enterprises, thus providing a clear avenue for boosting shareholder value.
enhances a company's ability to build a bigger portfolio of distinctive competencies.
gives a company a clear path to global market leadership in those industries where it has related businesses.