See if you can identify the value chain relationships that make the businesses of the following companies related in competitively relevant ways. In particular, you should consider whether there are cross-business opportunities for (1) transferring skills/technology, (2) combining related value chain activities to achieve economies of scope, and/or (3) leveraging the use of a well-respected brand name or other resources that  enhance differentiation.

  • Outback Steakhouse
  • Carrabba’s Italian Grill
  • Roy’s Restaurant (Hawaiian fusion cuisine)
  • Bonefish Grill (market-fresh fine seafood)
  • Fleming’s Prime Steakhouse & Wine Bar

The differentiation strategy of these companies is to make its restaurant different from others so that the customers prefer them over their competitors. They focus on high quality of food for this purpose. Another aspect is the price that they offer. They try their products to be cheap. They also tend to provide a healthy environment at their restaurants. This is an example of two strategic fit opportunities by transferring skills and combining the related value chain activities to provide cheap products to the customers.