Corporate Strategy Expansion of Apex

What corporate strategy is Apex pursuing in this scenario?

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

Corporate Strategy of Apex

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

Exploring Apex's Corporate Strategy Expansion

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

In the Related-constrained strategy, industries/companies share resources and activities between businesses. This collaboration enables the companies to leverage their strengths and minimize risks. Non-common firms unite to invest in a business, where dominant firms with higher shares drive profitability, especially in areas like technology development and product services.

By pursuing a Related-constrained strategy, Apex is capitalizing on the synergy between its different businesses to create a strong and diversified brand portfolio. This approach enhances the overall competitiveness and sustainability of the company in the market.