Question

Nocturnal Products started as a luxury brand for designer apparel. Soon, the company expanded by launching its own line of premium perfumes, watches, bags, and home furnishings. This expansion allowed the businesses under the company to share a few of the common competencies in products, services, technology, and distribution. Which of the following corporate strategies is Nocturnal pursuing in this scenario?

A. niche marketing strategy
B. related-linked strategy
C. related-constrained strategy
D. taper integration strategy

Answer 1

B. related-linked strategy

Step-by-step explanation:

Related-linked diversification as a corporate-level strategy, refers to when a firm builds upon or extends its resources and capabilities to create value. A company using the related diversification strategy intends to develop and exploit economies of scope between its businesses.

In the given scenario ''the expansion allowed the businesses under the company to share a few of the common competencies in products, services, technology, and distribution.''

Obviously the company is using the related-linked strategy

Answer 2

B. related-linked strategy

Step-by-step explanation:

Based on the information provided within the question it can be said that in this scenario Nocturnal is pursuing a related-linked strategy. This is a strategy in which two company's are linked together but more than 70% of the revenue is generated by the dominant company while the other company shares some of the resources and activities from the dominant company for their operations. Which in this scenario the smaller company shares the dominant company's products, services, technology, and distribution systems.