What are the different levels of diversification firms

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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.

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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?

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