Diversifying a business will also lead to the company creating an “edge over the rest of its competitors” this will lead to sustainability of the business. To create value a company can use related diversification strategy. This is operational relatedness and corporate relatedness. Operational relatedness the company shares its activities. Corporate relatedness a company will transfer its core competencies. Companies can use both types to achieve a higher profitability.
Provide a rebuttal. Did they answer fully this question,
What are the different levels of diversification firms can pursue by using different corporate level strategies and what are the advantages to diversifying their operations?