Strategic Management: Concepts and Cases: Competitiveness and Globalization 13th Edition by Michael Hitt , R. Duane Ireland , Robert Hoskisson

Exercise 4

One rationale for pursuing related diversification is to obtain market power. In the United States, however, too much market power may result in a challenge by the U.S. Justice Department (if a firm is perceived to be anticompetitive). Ask students in what situations related diversification might be considered unfair competition.