Despite the Heterogeneity of the Goods and Services Supplied by LVMH

Multiple Choice

Despite the heterogeneity of the goods and services supplied by LVMH (e.g.leather bags and shoes,wine and spirits,fashion clothing,jewelry and watches) ,we can consider LVMH's diversification to be into strategically-related industries because:

A) Most of its products are sold at airport,tax-free shops
B) LVMH benefits from massive economies of scope through centralizing common functions such as purchasing,R&D,manufacturing,and marketing
C) LVMH's portfolio balances mature,cash-generating businesses with growing,cash-using businesses
D) The different business all require global marketing to high income consumers,hence draw upon similar management capabilities.