Checking a diversified company's business portfolio for the competitive advantage potential of cross-business strategic fits does not involve determining whether sister business units have value chain match-ups that offer opportunities to 1. transfer competitively valuable resources and capabilities from one business to another thereby boosting the performance of the receiving business. 2. reduce costs by combining the performance of certain closely related value chain activities and thereby capture economies of scope 3. employ the same basic competitive approach and pursue the same type of competitive advantage 4. collaborate in creating valuable new competitive capabilities 5. share use of a corporate parent's umbrella brand name or the highly-regarded brand name of a certain sister business.
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Checking a diversified company's business portfolio for the competitive advantage potential of cross-business strategic fits does not involve determining whether sister business units have value chain match-ups that offer opportunities to 1.
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