Checking the competitive advantage potential of cross-business strategic fits in a diversified company involves evaluating the extent to which sister businesses present opportunities
-to combine the performance of certain cross-business activities and thereby reduce costs.
-to transfer skills, technology, or intellectual capital from one business to another.
-for the company's different businesses to share use of a well-respected brand name.
-for sister businesses to collaborate in creating valuable new competitive capabilities.
-to create a positive image in the industry irrespective of the financial performance of its businesses.