CONCEPT: STRATEGIC FIT
CONCEPT: STRATEGIC FIT
- Exists when different businesses have sufficiently related value chains that permit
- Transferring skills & expertise from one business to another
- Combining performance of related activities so as to reduce costs
- Presence of strategic fit in a diversified firm’s portfolio, along with corporate management’s skill in capturing benefits of the interrelationships
- Makes related diversification capable of being a 2 + 2 = 5 phenomenon