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Apex started as a luxury brand for designer apparel. Soon, the company expanded by launching its own line of premium perfumes, watches, bags, and home furnishings. This expansion allowed the businesses under the company to share a few of the common competencies in products, services, technology, and distribution.

Which of the following corporate strategies is Apex pursuing in this scenario?

Answer :

The corporate strategies which the brand Apex is pursuing in this scenario is known as Related-constrained strategy.

It is generally possible for the brands to distribute their shares because it lowers the loss occurrence on them as more people show faith on their brand. This minimizes the long term failure or bankruptcy condition which emerging brands could face. In related constrained strategy, the industries/ companies shares their resources and activities between its businesses.

In this condition, all non-common firms come together to invest in a business. In such interaction, most of the revenue comes through dominant firms who hold greater number of shares and in those which are profitable such as technology development or product service.

Learn more about related-constrained strategy at:

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