Qualcomm, a high-tech company headquartered in San Diego, owns the rights to several of the key components that permit cell phones to work. Instead of selling cell phones itself, Qualcomm grants permission to many companies to use specific forms of its intellectual property in exchange for monetary compensation. Qualcomm in engaging in an external growth strategy referred to as ________.
A) licensing
B) strategic alliances
C) acquisitions
D) new product development
E) joint ventures

Question

Quizplus · Accepted Answer

Qualcomm is engaging in a licensing external growth strategy, as it is granting permission for the use of its intellectual property in exchange for compensation, rather than acquiring other companies or creating joint ventures.

Qualcomm, a High-Tech Company Headquartered in San Diego, Owns the Rights