7. Value-Creating Strategies of Diversification High Low Operational and Corporate Relatedness Corporate Relatedness: Transferring Skills into Businesses through Corporate Headquarters Operational Relatedness: Sharing Activities between Businesses High Low Related Constrained Diversification Vertical Integration (Market Power) Unrelated Diversification (Financial Economies) Related Linked Diversification (Economies of Scope) Both Operational and Corporate Relatedness (Rare capability that creates diseconomies of scope)