What are three types of opportunities for sharing a sound ba

Solution

The three types of opportunities are management, market-related and operating related. It is a fact that businesses in a portfolio have to be related in tangible ways so as to ensure that the core competencies of the organization as a whole are beneficial.

The questions that have to be asked with regards to diversification are – what can the company do better than any of its competitors, what are the core competencies that will be required to succeed in the market, will diversification break up or hold together the core competencies that are required to be kept together, how will the organization emerge as a winner in the new market, what can be learned by the company through diversification and is the company sufficiently organized to learn from these new opportunities?

An example of management opportunities would be Best Buy. The company has added several stores within stores over the last few years. Their Greek Squad segment does in store and in home service and repairs on the products they offer. This helps in filling the need that many customers have for after sales service. The company has also added Apple and Samsung areas in their stores along with a wireless department for selling phones as well as plans to customers for almost all cellular carriers. This has enabled Best Buy to diversify and be perceived by customers as being more than just an electronics store.

References:

Pearce II, J.A., & Robinson, R.B. (2015). Strategic management: Planning for domestic & global competition (14^th ed.). New York, NY: McGraw-Hill Education.

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