Diversifying in related businesseswhen diversifying in

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Diversifying in related businesses

When diversifying in related businesses, such as horizontal relationships, the firm benefits from leveraging core competencies and sharing activities. As such, this enables the firm to gain from economies of scale. An example of this is when a sporting goods store, with one or several locations may acquire retail stores carrying other product lines. This leads to leverage, by reusing many of its resources.

Reference no: EM13367196

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