The corporate strategy of a diversified organisation is the overarching strategy that answers the questions of "in which businesses should we compete?" and "how does bringing in these businesses create synergy and/or add to the competitive advantage of the organisation as a whole?" In the context of product development, corporate strategy is concerned with how a company's various products fit together to create a cohesive product line that meets customers' needs and provides a competitive advantage in the marketplace. Therefore, a corporate strategy is a vital tool for ensuring that a company's product development efforts are aligned with its overall business goals.

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