Sharing core competencies is one of the primary potential advantages of diversification. in order for diversification to be most successful, it is important that the products use similar distribution channels the target market is the same, even if the products are very different the similarity required for sharing core competencies must be in the value chain, not in the product the methods of production are the same

Abc computer company has a $20 million factory in silicon valley in which in builds computer components. during the current year, abc's costs are labor (wages) of $1.01.0 million; interest on debt of $0.20.2 million; and taxes of $0.20.2 million. abc sells all its output to xyz supercomputer for $2.62.6 million. using abc's components, xyz builds four supercomputers at a cost of $0.8500.850 million each, which comes from $0.6500.650 million worth of components, $0.10.1 million in labor costs, and $0.10.1 million in taxes per computer. xyz has a $30 million factory. xyz sells three of the supercomputers to other businesses for $1.81.8 million each. at year's end, it had not sold the fourth. the unsold computer is carried on xyz's books as a $0.8500.850 million increase in inventory.

The different concepts in the architecture operating model are aligned with how the business chooses to integrate and standardize with an enterprise solution. in the the technology solution shares data across the enterprise.

In macroeconomics, to study the aggregate means to study blank