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Firms using a low-level diversification strategy typically struggle to use their resources efficiently and are disadvantaged by the inability to gain economies of scale

Market power exists when a firm is able to sell its products above the existing competitive level or reduce the costs of its primary and support activities below the competitive level, or both

Diversification strategies are always successful

Golden parachutes protect managers from the negative consequences of over diversifying a firm

Southwest Airlines’ tightly integrated activities make its cost leadership strategy more vulnerable to imitation than if its activities were loosely integrated

Firms that sold off related units in which resource sharing was a possible source of economies of scope have been found to produce lower returns than those that sold off businesses unrelated to the firm’s core business

In order to meet and exceed customers’ expectations over time, firms must:

In large diversified firms, corporate headquarters distributes capital to its businesses to create value for the overall corporation

A firm uses a corporate-level diversification strategy for a variety of reasons, all of which have to do with ways to create value