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Summary

Disney Internal analysis  Firm’s resources, capabilities, core competencies, firm activities  competitive advantage  Internal analysis o Fostering organizational setting in which experimentation and learning are expected and promoted o Using global mindset  value measured by: o product’s perform...

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Di s ne y I nt e r nalanal y s i s  Fi r m’ sr e s o ur c e s , c a pa b i l i t i e s , c o r ec o mpe t e n c i e s , fir ma c t i vi t i e s c ompe t i t i v ea d v a nt a g e  I nt e r na la na l y s i s o Fo s t e r i n gor g a ni z a t i ona ls e t t i n g i nwh i c he xpe r i me n t a t i ona nd l e a r ni n ga r ee xpe c t e da nd pr o mo t e d o Us i n gg l oba lmi nd s e t  v a l ueme a s ur e db y: o pr o duc t ’ spe r f or ma nc e c ha r a c t e r i s t i c s o t hepr o duc t ’ sa t t r i bu t e sf o rwhi c h c us t ome r sa r ewi l l i n gt opa y  b ybund l i n ga nd l e v e r a gi n gt he i r r e s our c e sa nd c a pa bi l i t i e s  c ompe t i t i v ea dv a nt a g e o c or ec ompe t e nc i e s , pr odu c t ma r k e tpos i t i o ns  r e s our c e s o s ou r c e soffir m’ sc a pa bi l i t i e s o a l on e , dono tyi e l dc ompe t i t i v ea dv a nt a g e o fir m’ sa s s e t s :p e opl e ,v a l ueo fb r a ndna me o i n put si n t ofir m’ spr od uc t i onpr o c e s s :c a pi t a le q ui pme nt , s ki l l sofe mpl o y e e s , br a ndna me s , fina nc i a l r e s our c e s , t a l e nt e dma na g e r s o t a n gi b l ea ndi nt a n gi b l e  c a pa bi l i t i e s o c a pa c i t yt od e pl o yr e s ou r c e s o un i qu es ki l l sa ndkno wl e d g eoffir m’ se mpl o y e e o f unc t i ona le xp e r t i s e  c or ec ompe t e nc i e s o r e s our c e sa ndc a pa bi l i t i e st ha ts e r v ea ss ou r c eofc ompe t i t i v ea d v a nt a g e  f ourc r i t e r i a  v a l ua bl e ,r a r e ,c os t l yt oi mi t a t e ,n ots ub s t i t ut a bl e  v a l ua bl e–ne ut r a l i z et hr e a t sor e xpl oi to ppor t u ni t i e s  r a r e–no tpos s e s s e db yo t he r s  c os t l yt oi mi t a t e–hi s t o r i c a l br a ndna me ,a mbi g uousc a us e s a ndu s e sa r eunc l e a r , s oc i a l c ompl e xi t y( t r us t )  no ts ub s t i t ut a bl e–noe q ui v a l e nt  v a l uec h a i na na l y s i s o fir mund e r s t a ndpa r t sofi t sope r a t i onst h a tc r e a t e v a l ue  un de r s t a ndc os tpos i t i o n  i de nt i f yme a nst of a c i l i t a t e i mpl e me nt a t i on o pr i ma r ya c t i vi t i e s  pr o duc tc r e a t i on  pr o duc ts a l ea nddi s t r i bu t i on  pr o duc ts e r v i c ea f t e rs a l e  s up por ta c t i vi t i e s

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o s up por tn e c e s s a r yf o rpr i ma r ya c t i vi t i e s v a l uec h a i n o s ho who wpr od uc tmo v e sf r o mr a wma t e r i a ls t a g et ofin a lc us t ome r o r a t ee a c hs t e pa ss upe r i or , e qui v a l e nt , s up e r i or ou t s our c i n g o pu r c ha s eofv a l ue c r e a t i n ga c t i vi t yf r o me xt e r na ls up pl i e r  i mpr o v ebu s i ne s sf o c us  pr o vi d ea c c e s st owor l d c l a s sc a pa bi l i t i e s  a c c e l e r a t ebus i ne s sr e e n gi n e e r i n gbe ne fit s  s ha r i n gr i s k  f r e e sr e s our c e sf orot he rpur pos e s i s s ue s o on l yo ut s ou r c ei fo t he rfir mp os s e s s e sc or ec ompe t e nc e si np e r f or mi n ga c t i vi t y o do n ’ ti fy ouc a nc r e a t eo wnv a l ue o don ott one ut r a l i z ee n vi r on me nt a lt h r e a t sorne c e s s a r yon g o i n gor g a ni z a t i on a lt a s ks o don oti fc r i t i c a lt ofir m’ ss uc c e s s o don oti fde v e l op i n gne wc a pa bi l i t y t a k e a wa y s o Ne v e rt a k ef orgr a nt e dt ha tc or ec ompe t e nc i e swi l lc on t i nuet opr o v i deas our c eofc ompe t i t i v ea d v a nt a g e o Al lc or ec ompe t e nc i e sha v et hepo t e nt i a lt ob e c omec or er i gi d i t i e s o Cor er i gi di t i e sa r ef or me rc or ec ompe t e nc i e st ha tno wg e ne r a t ei ne r t i aa nds t i flei nn o v a t i on o De t e r mi n i n gwha tt h efir mc a ndot hr ou ghc ont i n uousa nde ffe c t i v ea na l y s e sofi t si nt e r na le n v i r onme nt i nc r e a s e st h el i ke l i hoo dofl on g t e r mc ompe t i t i v es uc c e s s o De t e r mi n i n gwha tt h efir mc a ndot hr ou ghc ont i n uousa nde ffe c t i v ea na l y s e sofi t si nt e r na le n v i r onme nt i nc r e a s et hel i k e l i ho odofl on g t e r mc ompe t i t i v es uc c e s s

 WhyhasDi s ne ybe e ns uc c e s s f ulf ors ol o ng ? Di s ne yha sbe e ns uc c e s s f ulf ors ol on gbe c a u s et h e ys t i c ko nt hec u t t i n ge d g eofe nt e r t a i nme nta nda r ea l wa y son es t e p a he a doft hec ompe t i t or s .Fo re xa mpl e , Wa l tDi s ne yc r e a t e dMi c ke yMou s ea f t e rt heOs wa l df r a nc hi s ewa ss t ol e nf r om h i mb yt hedi s t r i but o r s . Th i swa sf ol l o we db ys uc c e s s e sofi nt r od uc i n gne wc ha r a c t e r s ,r e l e a s i n gSno wWhi t e ,a nd j o i ni n gt hefie l do fl i v e a c t i onmo vi e s . Th ef e e loft hec ompa n ywa sa l s ov e r yi mpo r t a nt .Ev e r y onei nt hec ompa n y us e dt he i rfir s tna me sa ndnoo neha dat i t l e . Th i she l pe dt he i rc r e a t i vi t ya nd“ f un ”oft hec ompa n y .AsMi c ha e lEi s ne r s t a t e d, “ ma na gi n gc r e a t i vi t y”i st he i rmos ti mpo r t a n tc or po r a t es ki l l .Thi sv a l ueofc r e a t i vi t yi swha tke ptt hi sc ompa n y mo vi n gf or wa r d . 

Whatar eDi s ne y ’ smos ti mpor t ants t r a t e gi cr e s our c e s( i fany) ?Bec l e araboutt hec r i t e r i ay our e l yont o as s e s spot e nt i alv al uabl er e s our c e sandc apabi l i t i e s . Di s ne y ’ smos ti mpo r t a nts t r a t e gi cr e s our c ei si t se mpl o y e e sa ndkno wl e dg e .The i re mpl o y e e sa r es oi mpor t a ntbe c a us e t he yne e dt os t a yt hemos tc r e a t i v ec ompa n yt os t a ya he a d .Onas ma l l e rs c a l e , t he i re mpl o y e e sa tpa r ksmus tbea wa r e , c he e r f ul ,a ndf r i e ndl yt oke e ppe op l es a f ea ndha pp y .Di s ne yr e l i e so nt he i re mpl o y e e sgi vi n gc ons u me r st hebe s t po s s i bl ee xpe r i e nc et og e tpe op l ec omi n gba c k. Whe npe opl eg ot oDi s ne y , t he ys pe a ko ft he“ ma gi c ”t ha ti sf e l t . Thi s s t a r t swi t ht hee mpl o y e e s . I na dd i t i on, Di s ne ymus tc ont i nu et opr odu c eTVs ho wsa ndmo vi e st oe nha nc et hei ma g e a ndt ok e e pvi e we r sa r oun d. The i re mpl o y e e smus tfin da ndwr i t eg oods c r i pt sa ndg oo ddi r e c t i n gt ok e e pt hi sa r e aof t heb us i ne s ss uc c e s s f ul .The i rkno wl e dg ei si mpo r t a n tb e c a us et he ya r ev e r yu ni q uea ndh a v et hec ompe t i t i v e a d v a nt a g eofe xpe r i e n c eo v e ra n yo t he rc ompe t i t or . The i rs yn e r gyh e l psk e e pt he i re mpl o y e e swor ki n gwe l lt o g e t he r , a ndo v e r a l loffe r i n gt hebe s te xpe r i e nc et oc ons ume r s .

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Whati mpl i c at i onsdoe st hi sha v ef ort hes t r a t e gi copt i onsDi s ne ys houl dpur s uei nt hene arf ut ur e ?Bas e y ourans we rony ourunde r s t andi ngofwhatr e s our c e s( i fany)Di s ne yhast ha tar ev al uabl e , r ar e ,i ni mi t abl e andnons ubs t i t ut abl e . Di s ne y ’ smos tun i qu ea ndi n i mi t a bl et r a i ti st he i rt he mepa r ks . It h i nkt he ys ho ul dk e e pe xpa nd i n gt he s epa r ksa r oun d t hewo r l d, a ki nt owha tt h e yde v e l ope di nSh a n gha i . The r ei sahu g eAs i a nma r k e tf orDi s ne y ,d uet ot h ep a r ksi n Toky o ,Hon gKon g ,a ndno wSha n gha i . Anot he rhu g es uc c e s soft hec or po r a t i onwa st hepu r c ha s eofas uc c e s s f ul mo vi ef r a nc hi s e :St a rWa r s . Di s ne ybo u ghtSt a rWa r sa ndpr odu c e dane wmo vi et ha tdi de xt r e me l ywe l la ndma de

Di s ne yal o to fmon e y .Di s ne yha st hec a pi t a lt opu r c ha s emor ef r a nc hi s e s ,a ndi ft he yma k es ma r tp ur c ha s e s ,t he yc a n e xpa ndt h e i rb r a nde v e nf ur t he r . No tma n yc or po r a t i onsh a v et h ec a pi t a lt obu yaf r a nc hi s e ,ma ki n gt hema r k e tv e r y s ma l la ndp r o vi n gt hemo vi e st obear a r ec ommo di t y .  Whatdi dMi c hae lEi s ne rdot ot ur nDi s ne yar ound?Wha tc or ec apabi l i t i e sdi dhebas ehi ss t r a t e gyon? Mi c ha e lEi s ne rt oo kahol doft hec ompa n yi n19 84. Hi smo t i v a t i onwa st ogr o wt h ec ompa n ya smuc ha shec ou l d whi l ek e e pi n gt he“ q ua l i t y ,c r e a t i vi t y ,e n t r e pr e ne ur s hi p, a ndt e a mwo r k. ”Hewa nt e dt ok e e pt hec ompa n yf u nwhi l e s t i l lgr o wi ngt hec or po r a t i on. Fo re xa mpl e ,hema dea l le mpl o y e e s , i nc l udi n ge x e c ut i v e s ;dr e s supa sc ha r a c t e r sa tt he pa r ksf ore v e r y on ei nt h ec ompa n yt ob es e e na taho r i z ont a lpl a ne . I ta l s ok e e pst hef e e loft hec ompa n yl oos e , whi c h i sv e r yi mpor t a ntf ort hes uc c e s soft hec omp a n y .Het ur ne dt hef oc usba c kt oTVs ho wsa ndmo vi e swhi c hbe c a me muc hmo r es uc c e s s f ula f t e rhet ooko v e r .I na dd i t i on, hema det hea mu s e me ntpa r ksmor es uc c e s s f ulb yfil l i n ga l lt he a v a i l a b l es pa c ea ndgi vi n gt hec ons ume r sabe t t e re xpe r i e nc e .Thebi g g e s tp a r thea dde dwa st hee xpa ns i ont oot he r c ount r i e s , s uc ha sTo ky oa ndPa r i s . Wi i I nno v at i onandCompe t i t i v eDynami c s  Ca pt ur i n gv a l ue o Compe t i t i v ed yna mi c s  r e c og ni z et hr e a t sofc ompe t i t i on  a nt i c i pa t e , notr e a c t  un de r s t a nde c ono mi ci nc e nt i v e sa ndb e ha vi or a lp r e di s pos i t i onsofc ompe t i t or s o a nt i c i pa t i n g  us ede t a i l e di n f oa bou tt he mt of or e c a s twha tt he ywi l ldo  pr e v e ntmo v e st h a tha r mone ’ si nt e r e s twhi l ep r omot i n gt ho s et ha th e l p  t woc ompl e me nt a r ya pp r oa c he s  g a met h e or y  c ompe t i t orpr ofil i n g  g a met h e or y o t a k e se c on omi cpe r s pe c t i v e o f oc us e soni nc e nt i v e sund e rc ond i t i onsofc ompe t i t i on o f oc us e sonwha tc ompe t i t o r ss h oul dd ounde rr e a s on a bl eba s e l i nea s s ump t i ons  wha tc ompe t i t o r swa nt , s e et he ms e l v e sdoi ngt oa c c ompl i s hg oa l s ,wha tt he yha v et e nde dt od o  c ompe t i t orpr ofil i n g o r e l a xa s s ump t i ons  c ompe t i t or s  ma yno tbeou tt oma x i mi z ev a l ue  ma yho l ddi ffe r e ntbe l i e f sa bo uts hi f t i n gbus i ne s sl a nds c a pe  de c i s i onsma yr e fle c ti ne r t i ar a t he rt ha npur pos e f ulc hoi c e o de l i be r a t ed e pa r t ur e sf r om v a l ue 0ma xi mi z i n gg oa l sma yr e fle c t :  or g a ni z a t i on ’ sc h a r t e r( publ i ce nt e r pr i s e , non pr ofit )  o wne r s hi ps t r uc t ur e( f a mi l yo wne da ndo r i e nt e d)  a g e nc ypr obl e ms( ma na g e rpu r s u i n gpe r s on a lg oa l sa te xpe ns eoffir mv a l ue  c ha n g et heg a me o s ha pi n g  i nflu e nc ek e ye l e me nt sofi ndus t r ys t r uc t ur ea ndc ondu c tc ha ng e o a da pt i n g  s t a k eoutp r ofit a bl epo s i t i ongi v e nk e ye l e me nt sofi ndus t r ys t r uc t ur ea ndh o wt he ya r ec ha n gi n g  i nn o v a t i on–c omme r c i a l i z a t i onofi n v e nt i on o i n v e nt i on-di s c o v e r yofn e wi de a s / pr odu c t s o “ g a l eofc r e a t i v ede s t r uc t i on ”  e nc y c l ope di a st oWi ki p e di a , t yp e wr i t e r st oPCs  Ama z on o f ours t a g e s  i nt r odu c t i on

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gr o wt h ma t ur i t y de c l i ne

de c l i ni n gp r i c e so v e rt i me o i nc r e a s e dc ompe t i t i on  s up pl yi nc r e a s e s ,do wn wa r dpr e s s ur eo npr i c e o r a pi dp a c eoft e c h t ype sofi nno v a t i on i nc r e me nt a l o s t e a d yi mpr o v e me nt  Gi l l e t t er a z or s ,I nt e lPr oc e s s or s  Of t e nf r om i nc umbe nt s  St r on g e rpo s i t i on, hi ghba r r i e r st oe nt e r ,or g a ni z a t i ona li ne r t i a , r e i nf or c es uppl i e r / b uy e rn e t wor ks o Ra di c a l  No v e lme t hodso rma t e r i a l ss e r vi n gne wma r k e t s  Ma s spr od uc t i on( Fo r d) ,MRIr a di o l ogy o Ar c hi t e c t ur a l  Re c onfig ur ekno wnc ompon e nt st oc r e a t ene wma r k e t s  Ca nonus e r f r i e ndl yc op i e r s ,GPSt oha ndhe l dc ons ume rde vi c e s o Di s r up t i v e  No v e lt e c hn ol o gi e ss e r vi n ge xi s t i n gma r k e t s  J a pa ne s ea ut o s ,di g i t a lpho t o gr a ph y ,d a t as t o r a g eme di a o St e a l t ha t t a c k  Ca pt ur e sc ur r e ntc us t ome r swi t hi ni t i a l l yl o we rc os ta ndp e r f or ma nc e  Pr o t e c ta g a i ns ti t di s r upty our s e l f Hyp e r c ompe t i t i on o Nos i n g l es t r a t e gys u s t a i nsc ompe t i t i v ea dv a nt a ge( mus tbes e r i e sofs hor tt e r ma dv a nt a g e s ) Por t e r ’ s5f or c e s

1 .

Whatar es omepos s i bl ef ac t or st hatc oul de xpl a i nwhyt hel e ade ri nonege ne r a t i ondi dno tbe c omet he l e ade ri nt hene xtge ne r a t i o n?WhySonywasane x c e pt i on? 2 . Doy out hi nkt hel aunc hs t r at e gyofWi iwasade qua t e ?Dur i ngt hepr oduc tl i f ec y c l e ,whatwoul dy ouha v e donet omi ni mi z et hee ffe c t sofpo t e nt i alr e s pons e sf r o mc ompe t i t or s ? Gi v e nt hec ur r e ntpr e s s ur e sf r om c ompe t i t or sands ubs t i t ut e s , whats houl dNi nt e ndodo? Onema i nr e a s onwh yt hel e a de ri non eg e ne r a t i ondi dnotb e c omet h el e a de ri nt hene xtg e ne r a t i oni sb e c a us e t e c hno l o gi c a la dv a nc e sf ore a c hc ompa n y . I nt hel a t e70sa nde a r l y8 0s , At a r iha dt hehi g he s ts a l e sv ol u mef ora n yvi de o g a mep r odu c e r .Onc eot he rc ompa ni e sg ot a c c e s st ot hi st e c hno l o gy ,t hec ompe t i t o r sc oul ds e l lt he mf ormuc hc he a pe r . Ni nt e ndot he nc a meo utwi t has y s t e m( Ni nt e nd o64)t h a twa sj us tbe t t e rt h a not he rs y s t e ms .Ev e nt u a l l y , Son yt oo ko v e r be c a us eoft h e i rPl a ySt a t i ona ndPl a ySt a t i on2. Ther e a s ont he ywe r eont o poft h ema r ke tf r om 1 994t o2005i sbe c a us e t he yma r k e t e dt o wa r da nol d e rde mogr a phi c . Thi sa g egr oupgr e wuponv i de og a me s ,a ndt hemor ema t ur e ,a dv a nc e d g a me sa ppe a l e dt ot h e m. Ho we v e r ,i n2 005 ,Ni nt e ndoc a meoutwi t har e v ol ut i o na r yg a mi n gs y s t e mt ha twa smo t i on c ont r ol l e da ndi nt e r a c t i v e . The ybe c a met hei nd us t r yl e a de r .Ho we v e r , Son ya ndMi c r os o f tr e a c t e dq ui c kl ya ndma dene w t e c hno l o gyt oc ompe t e , t he yo v e r t ookNi n t e ndoi ns a l e sv ol ume .So n ys t a y e dont o poft het e c hno l ogyg a mef orawhi l e , t ha t ’ swh yt he yl e ds a l e sf ort wos t r a i ghtg e ne r a t i ons .Al s o ,t he ya l l o we dt hi r dpa r t yde v e l ope r sac ha nc et oma k eg a me s , ma ki n gt hes y s t e mmor epop ul a r . Idon ott hi nkt hel a unc hf ort heWi iwa sa de qua t e .Whi l et he yha dadi s t i nc ta d v a nt a g eoft e c hno l o gya ndi nt e r a c t i on, t he yr e l e a s e dt ooe a r l ya nddi dnot ha v ear e s p ons eon c et he i rc ompe t i t or sr e a c t e d .Wi i ’ st e c hn ol o gywa se a s yt or e pl i c a t e a nda d v a nc eupo n. Thi sr e a c t i onc a mev e r yq ui c kl ya swe l l . I fNi nt e nd owa i t e da ndoffe r e dt e c hno l og yl i k eBl u Ra ya nd Ne t fli x ,t he yc oul dh a v edr opp e daha y ma k e r . I na ddi t i on, t he yd i dno tc oun t e rwe l lt oSo n ya ndMi c r os of t ’ sr e l e a s e swi t h t he s eme nt i one dc a pa bi l i t i e s . Onewa yt omi ni mi z et hee ffe c tofr e s p ons e st oc ompe t i t or swoul dbet os t a yonp a rwi t h t he i rt e c hn ol o gy .Onc et he s es t r e a mi n gc a pa bi l i t i e sbe c a mea v a i l a bl e ,Ni nt e ndod i dno tc oun t e r ,a ndt he r e f or ef e l lf a r be hi nd . Si nc emo bi l eg a mi n gha sbe c omes opopu l a r ,t he ymus tf or c et h e i rwa yi nt ot hi sfie l d .The yp a r t l ydi dt hi sa l r e a d ywi t h be i n gapa r to fPok e monGo, on eoft h el a t e s tmob i l eg a mi n gt r e nds .The ymus ts t a yr e l e v a nti nt heg a mi n gc on s ol e bu s i ne s sa ndn o wt heon l i nea ndmob i l eg a mi n gb us i ne s s . Sant ande r Cor por at eLe v e lSt r a t e gy  Bus i ne s sl e v e ls t r a t e gy o Ho wt oc ompe t ei nas i n g l ebu s i ne s s / i ndu s t r y  Cor por a t el e v e ls t r a t e gy o Ho wt oa c h i e v ea bo v enor ma lr e t ur ns( c ompe t i t i v ea d v a nt a g e )b yop e r a t i n gi nmor et ha no ne bu s i ne s s / i nd us t r y  Ke yq ue s t i onsofc or po r a t el e v e ls t r a t e gy o Wh a tbus i n e s ss ho ul dfir m bei n o Ho ws hou l dc or por a t eoffic ema na g et hegr oupo fbu s i ne s s o Cor por a t es t r a t e gyr e l a t e st os c opeo ft h efir m

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Cor por a t el e v e ls t r a t e gyv a l ued e t e r mi ne db yde gr e et owhi c hbu s i ne s s e si npo r t f ol i oa r ewor t hmor eund e r ma na g e me n to ft h ec ompa n yt ha na n yot he ro wne r s hi p o Exp e c t e dt ohe l pfir me a r na b o v ea v e r a g er e t ur nsb yc r e a t i n gv a l ue

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Le v e l sofdi v e r s i fic a t i on o Lo w o Si n gl ebu s i ne s ss t r a t e gy–c or po r a t el e v e ls t r a t e gyi swhi c hfir mg e ne r a t e s95% o rmor eofs a l e sr e v e nue f r omc or ebus i ne s sa r e a o Domi na n tb us i ne s sdi v e r s i fic a t i ons t r a t e gy-Fi r mg e ne r a t e7095% oft ot a ls a l e sr e v e nu ewi t hi ns i n gl e bu s i ne s sa r e a Mode r a t et ohi g hl e v e l s o Re l a t e dc ons t r a i ne ddi v e r s i fic a t i ons t r a t e gy  Le s st ha n70%  Di r e c tl i nks( e . g . s ha r epr oduc t s , t e c ha ndd i s t r i bu t i onl i nk a g e s )b e t we e nfir m’ sbus i n e s s e s o Re l a t e dl i n ke ddi v e r s i fic a t i ons t r a t e gy( mi x e dr e l a t e da ndun r e l a t e d )  Le s st ha n70%  Mi x e d:l i n ke dfir mss ha r i n gf e we rr e s ou r c e sa mon gbus i ne s s e s( c ompa r e dwi t hr e l a t e d c ons t r a i ne d ) , c on c e nt r a t i n gont r a ns f e rofkn o wl e d g ea ndc ompe t e nc i e so fb us i ne s s o Ve r yhi g h( unr e l a t e d )  Le s st ha n70%  Nor e l a t i on s hi pb e t we e nb us i ne s s e s Re a s onsf ordi v e r s i fic a t i on Va l ue c r e a t i n g o Ope r a t i ona lr e l a t e dne s s :s h a r i n ga c t i vi t i e sb e t we e nbu s i ne s s e s  Cor por a t er e l a t e dn e s s :t r a ns f e r r i n gc or ec ompe t e n c i e si nt ob us i ne s s o Ma r k e tpo we r  Ve r t i c a li nt e gr a t i on( v a l uec ha i na na l y s i s )  Bl oc ki n gc ompe t i t o r s o Fi n a nc i a le c ono mi e s  Effic i e ntc a pi t a la l l oc a t i on  Bus i ne s sr e s t r uc t ur i n g Va l uen e ut r a l( i nc e nt i v e s ) o Ant i t r us tr e gul a t i on ,t a xl a ws ,l o wpe r f or ma nc e , unc e r t a i nFCFs ,r i s kr e duc t i onf orfir m,s yn e r gya ndfir m r i s kr e du c t i on Va l uer e du c i n g o I nc r e a s i n gma na g e r i a lc ompe ns a t i on, di v e r s i f yi n g/ r e duc i n gma na g e r i a le mpl o yme ntr i s k Re l a t e ddi v e r s i fic a t i on o Sh a r e sl i n ksa c r os sp r oduc t s , t e c hs , a ndd i s t r i bu t i onc ha nn e l s o Be ne fit s  Ec on omi e sofs c op e ,s h a r i n ga c t i vi t i e s ,t r a ns f e rc or ec omp s ,ma r k e tp o we r ,v e r t i c a li nt e gr a t i on o Cos t s  Coo r di na t i ona ndi n t e gr a t i onc os t s Cor por a t el e v e ls t r a t e gi e s

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Ma r k e tde v e l opme nt–g e og r a phi cma r k e t s Pr od uc tDe v e l op me nt–n e wpr oduc t sori mpr o vi n go ne xi s t i n g Hor i z ont a lI nt e gr a t i on–a c qu i s i t i ono fc ompe t i t or s , hor i z on t a lmo v e me nta tt h es a mepoi n ti nv a l uec ha i n Ve r t i c a lI n t e gr a t i on–be c o meo wns up pl i e st h r ou gha c q ui s i t i on ,v e r t i c a lmo v e me ntupo rd o wnv a l ue c ha i n Unr e l a t e dd i v e r s i fic a t i on o Abs e nc eofdi r e c tl i nk sbe t we e nb us i ne s s e s o Be ne fit s( fina nc i a le c on omi e s )  Effic i e nti n t e r na lc a pi t a la l l oc a t i on( d i ffe r e ntdi v i s i ons ) , bu s i ne s sr e s t r uc t ur i n g( bu yi n ga nds e l l i n o t he rfir m’ sa s s e t si ne xt e r na lma r k e t ) o Cos t s  Ma na g e me nt M&Ac r e a t i n gv a l ue o Sy ne r gi...