This PPT slide, part of the 69-slide Corporate Strategy Primer PowerPoint presentation, outlines 2 critical questions essential for companies considering diversification. The first question focuses on identifying what the company can do better than its competitors in its current market. This requires a clear understanding of the company’s strategic assets, which are described as unique strengths that cannot be easily replicated. The slide emphasizes the importance of recognizing these strengths before attempting to leverage them in new markets or acquisitions. It suggests that by effectively utilizing these strategic assets, a company can enhance the value of an acquired entity or establish a foothold in a new market.

The second question addresses the strategic assets necessary for success in a new market. Here, the company must assess whether it possesses all the required assets to compete effectively. This involves a thorough evaluation of existing capabilities and whether they align with the demands of the new market. The slide hints at alternative strategies, such as purchasing or developing these assets, or even altering the competitive dynamics to render certain assets less critical. It also notes the importance of ensuring that the costs associated with these strategies remain reasonable.

Overall, the slide serves as a framework for executives to critically assess their readiness for diversification. It stresses the need for a strategic approach to leverage existing strengths while ensuring the necessary resources are in place for successful market entry. This analysis can guide decision-making and strategic planning for companies looking to expand their operations.

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Strategy Development Growth Strategy Strategic Planning Corporate Strategy Market Entry