Acquisition of an existing firm rather than via internal development may be the least risky and cost-efficient means of overcoming entry barriers such as
A)putting its own strategy into place.
B)accelerating efforts to build a strong market presence.
C)moving directly to the task of transferring resources and personnel, integrating and redirecting activities into its own operation.
D)fast-tracking exports into a foreign market by marketing indirectly through local rivals.
E)gaining access to local distribution networks, building supplier networks, and establishing working relationships with key government officials.

Question

Quizplus · Accepted Answer

Acquiring an existing firm allows a company to immediately tap into established local distribution networks, supplier relationships, and governmental connections, which are significant barriers to entry for new market entrants. This approach can be less risky and more cost-efficient than building these networks from scratch.

Acquisition of an Existing Firm Rather Than Via Internal Development