Describe how core capabilities in a particular type of supply chain configuration affect corporate diversification strategies.
ANSWER FROM A WEBSITE (Rmember this is only and idea for the answer use your own words)
Core capabilities of a particular supplychain can affect coporate diversification strategies in the following manner. Diversification strategies involve a firm stepping beyond its existing product set and business and entering a new value chain which may be into a new but related industry or a new industry that is different in entirety:
1. Core capability allows a company to make a product at a lesser price (due to reduced modification, rejections etc,). Thus it can invest in other diversification strategies.
2. Tweaking of its core component can easily lead to creating a new product for a new market.
3. Core capability is difficult to immitate and helps a company to diversify into different business other than its core business. For e.g.: A core competency of product innovation may be applicable in manufacturing as well as software related products.
Discussion post: Describe how core capabilities in a particular type of supply c