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Managing Business Complexity: Aligning Strategy For Growth

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Executive Summary

Complex strategies emphasizing both product exploration and exploitation or market exploration and exploitation are more successfully implemented by large firms. For example, large firms in highly competitive markets can offer diverse product lines; one line stays close to the company's current strengths and serves as the cash cow for one or more uncertain, experimental product lines. In a theater context, this differentiation of product lines can be carried out in different theater spaces. Although the different product lines likely target different customer segments, this strategy allows for cross-selling, moving traditional customers to more exploratory offerings and innovative customers to more traditional products.

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