When a firm is overly dependent on one or more products or markets, and the intensity of rivalry in that market is intense, the firm may wish to ____ by making an acquisition.
A) increase new product speed to market
B) broaden its competitive scope
C) increase its economies of scale
D) overcome entry barriers

Question

Quizplus · Accepted Answer

Broadening the firm's competitive scope through acquisition can help reduce its dependence on a single product or market, thereby reducing the intensity of rivalry in that market. This can also help the firm diversify its revenue streams and reduce its overall risk. The other choices are not as relevant to reducing dependence on a single product or market.

When a Firm Is Overly Dependent on One or More