One Motivation for Diversification Is Favorable Repositioning of the Firm's

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The Answer is On the pro side, the new business may add resources or capabilities that improve the performance of the firm's core business units. For example, global media companies, such as Disney, Viacom, and Fox, commonly expand through the acquisition of content or distribution. Fox's development of Fox Kids allowed Rupert Murdoch to offer a more diverse bundle of programming to distributors in international markets, thus increasing the value of his existing entertainment units.
However, attempts at repositioning involve three major risks:
1) the benefit from the new business may be lower than expected;
2) the isolating mechanisms protecting the new business's contribution to the diversified firm may be weak and rivals may be able to copy or design around the business unit's capabilities;
3) the diversified firm may not be able to sustain the new business's market position.

One Motivation for Diversification Is Favorable Repositioning of the Firm's

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Correct Answer:
Verified

One Motivation for Diversification Is Favorable Repositioning of the Firm's

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified