When a company acquires a capability from an external supplier and uses that capability to create value for customers, the firm has engaged in
A) benchmarking
B) outsourcing
C) diversification
D) international expansion

Question

Quizplus · Accepted Answer

The process described in the question is outsourcing, where a company brings in a capability from an external supplier to add value to their existing offering. Benchmarking involves comparing a company's practices to those of its competitors, while diversification and international expansion refer to company growth and expansion strategies.

When a Company Acquires a Capability from an External Supplier