Strategic fit exists whenever one or more activities comprising the value chains of different businesses are sufficiently similar as to present opportunities for:

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a.   Transferring competitively valuable expertise or technological know-how or other capabilities from one business to another

b.   Combining the related activities of separate businesses into a single operation to achieve lower costs

c.   Exploiting common use of a well known brand name

d.   Cross-business collaboration to create competitively valuable resource strengths and capabilities

CORE CONCEPT: Strategic fit exists when the value chains of different businesses present opportunities for cross-business resource transfer, lower costs through combining the performance of related value chain activities, cross-business use of a potent brand name, and cross-business collaboration to build new or stronger competitive capabilities.

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