Question

Different businesses are said to be "unrelated" when: Group of answer choices a) the products of the different businesses are not bought by the same types of buyers or sold in the same types of retail stores. b) they are in different industries. c) there is an absence of competitively valuable strategic fits between their respective value chains. d) the businesses have different supply chains and different types of suppliers. e) the products of the different businesses satisfy different buyer needs.

Answer 1

Businesses are considered 'unrelated' when there's no strategic synergy or competitive benefits connecting their value chains.

Step-by-step explanation:

Different businesses are said to be "unrelated" when c) there is an absence of competitively valuable strategic fits between their respective value chains. When evaluating the relationship between different businesses, it's important to look beyond just product differences or industry classifications. The key factor is whether there are strategic synergies and competitive advantages that can be leveraged across the businesses. For example, a conglomerate owning businesses in entirely distinct markets can still find unrelatedness if there's no strategic value connecting those businesses, despite the diversity in products and markets. In contrast, tying sales and bundling are approaches used to create relationships between products or services, offering consumers a perceived or real advantage.

Answer 2

b) they are in different industries.

Step-by-step explanation:

Businesses are unrelated when their internal activities that lead to the production of goods and services are very different. A difference in the value chains implies that the end products will be dissimilar.

Unrelated businesses will not compete against each other for suppliers or customers. The market gaps they attempt to fill are very diverse. For example, A phone service company is unrelated to a TV service firm.