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Traditional measures of relatedness provide an incomplete and potentially inaccurate picture of the scope of exploit interrelationships between its SBUs. This is because traditional measures look at relatedness only at the industry or market level. But as we explain below, the relatedness that really matters is that between 'strategic assets' Therefore, to accurately measure whether two businesses are related, we need to go beyond broad definitions of relatedness that focus on market similarity; we need to look at the similarities between the underlying strategic assets of the various businesses that a company is operating in.
- Constantinos C. Markides

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Traditional measures of relatedness provide an incomplete and potentially inaccurate picture of the scope of exploit interrelationships between its SBUs. This is because traditional measures look at relatedness only at the industry or market level. But as we explain below, the relatedness that really matters is that between 'strategic assets' Therefore, to accurately measure whether two businesses are related, we need to go beyond broad definitions of relatedness that focus on market similarity; we need to look at the similarities between the underlying strategic assets of the various businesses that a company is operating in.
- Constantinos C. Markides

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