Question: Which best explains how horizontal diversification allows corporations to engage in cost leadership in a particular market? They are able to provide inputs to themselves

Which best explains how horizontal diversification allows corporations to engage in cost leadership in a particular market?

They are able to provide inputs to themselves at a cheaper rate.

They are able to lower their prices below the market rate by subsidization from their businesses in other markets.

Being in multiple markets allows a corporation to develop novel and innovative product mixes.

Diversification reduces overall risk, allowing corporations to engage in the long term planning necessary to pursue cost leadership strategies.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

Accounting HW 1: Due date Sep 9, 2019 Simplex Corporation provides the following information at the end of the year. Salaries payable to workers at the end of the year Advertising expense for the...

Q:

\f\f\fChapter 2 Service Strategy Learning Objectives After completing this chapter, you should be able to: 1. Formulate a strategic service vision. 2. Describe how a service competes using the three...

Q:

Please help with the assigned discussion. The hyperlinks are attached. MY COMPANY IS WALMART Assigned Discussions: 1. Develop and explain a recommended corporate strategy for the selected company....

Q:

Chapter 5 - Decision Making, learning, Creativity, and Entrepreneurship Decision making is the process by which managers respond to opportunities and threats by analyzing the options and making...

Q:

The Coca-Cola Company Executive Summary Coca-Cola has been the staple in the soft drink market since John Pemberton founded the company in Atlanta, Georgia, 1866. With 1.8 billion Coke bottles...

Q:

Management 4390 Exercise: Applying the Content of Chapter 3 to your Company 1. Which of the five competitive forces is creating the strongest competitive pressures for your digital camera company? 2....

Q:

by Vicki Jayne / business excellence Built to Last How to fill performance gaps How do you build a strong performance ethic into your organisational culture? Vicki Jayne talks to two executives who...

Q:

BACKGROUND An SM bond is a 35-year Australian government bond with a face value of $1. They are marketed to consumers saving for retirement (who buy the S part) and investors (who buy the M part)....

Q:

\f \f11TH EDITION STRATEGIC MANAGEMENT THEORY 11TH EDITION Strategic Management THEORY Charles W. L. Hill University of Washington - Foster School of Business Gareth R. Jones Melissa A. Schilling New...

Q:

Evaluation and Control in Strategic Management Evaluation and control information consists of performance data and activity reports (gathered in Step 3 in Figure 11-1). If undesired performance...

Q:

Sustainability & Corporate Social Responsibility at GE \"GE should be commended for a bold approach to climate issues. However, the company has a long way to go before it can legitimately claim to be...

Q:

Analyzing and Interpreting the Effects of Inventory Errors The income statements for four consecutive years for Colca Company reflected the following summarized amounts: Subsequent to development of...

Q:

A sorority has 12 members, 6 of whom support capital punishment. Let X denote the number of supporters among 4 girls selected at random from the group. a. What is the probability distribution of X?...

Q:

n an experimental bubbles market, participants trade assets with a fixed life. Dr . Ackert is observing a narket that has 2 trading periods remaining. Each period the asset earns an equally likely...

Q:

Part C A 1102-kg car and a 2260-kg pickup truck As the car and truck round the curve at 60.4 mi/h , find the normal force on the car to the highway approach a curve on the expressway that has a...