Which strategy involves acquiring businesses related through technology or markets?

The strategy that involves acquiring businesses related through technology or markets is concentric diversification. This approach focuses on expanding a company’s operations by acquiring or merging with businesses that share a technological or market-based synergy. This means that the new business can complement or enhance the existing business operations, leading to improved efficiencies, greater competitive advantages, and the ability to leverage existing capabilities.

Concentric diversification often allows a company to gain access to new markets or technologies that are closely aligned with its current offerings. For example, a company that manufactures electronic devices may acquire a software firm that develops applications for those devices. This strategy not only fosters innovation but can also enhance overall brand value and market presence by providing customers with a more integrated product or service offering.

In contrast, other strategies listed do not focus on such relatedness. Conglomerate diversification refers to acquiring businesses that are unrelated to the current operations or products, while market development involves expanding into new markets for existing products. A turnaround strategy focuses on revitalizing a struggling business rather than expansion through acquisitions. Thus, concentric diversification is the most appropriate choice for acquiring related businesses through technology or markets.