Corporate Strategy Diversification - Prof. Dr. Bernd Venohr
Corporate Strategy Diversification - Prof. Dr. Bernd Venohr
Corporate Strategy Diversification - Prof. Dr. Bernd Venohr
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Horizontal diversification: Identify cross-business shared<br />
resources by comparing value chains across businesses<br />
Business A<br />
Business B<br />
Business C<br />
Business D<br />
Business E<br />
© 2006 <strong>Dr</strong>. <strong>Bernd</strong> <strong>Venohr</strong><br />
Inbound<br />
Logistics<br />
Technology Operations<br />
Value Chain Activities<br />
Sales and<br />
Marketing<br />
Distribution Service<br />
Opportunity to combine purchasing activities (gain more leverage with suppliers)<br />
Opportunity to share technology, transfer technical skills, combine R&D<br />
Opportunity to combine sales & marketing activities, use common distribution channels,<br />
leverage use of a common brand name, and/or combine after-sale service<br />
No sharing<br />
Source: Robert M. Grant, Contemporary <strong>Strategy</strong> Analysis: Concepts, Techniques, Applications (5th edition, Blackwell, 2004)<br />
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