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The first is a company’s capability to transfer expertise or expertise amongst similar value chains. Two enterprise items, for instance, can share the identical sales force or logistics community. Diversifying firms are additionally prone to make use of rapid growth or other easy indicators as a proxy for a target industry’s attractiveness. Many that rushed into fast-growing industries have been burned as a end result of they mistook early progress for long-term profit potential. Industries are profitable not as a result of they’re sexy or high tech; they’re profitable only if their structures are enticing.
