In which of the following industry environments are new ventures most likely to be favored over acquisitions as a means of entering a new business area?
A) An embryonic industry
B) An industry in its later stages of growth
C) An industry passing through the shakeout stage
D) A mature industry
E) A declining industry

Question

Quizplus · Accepted Answer

In an embryonic industry, there are few established players and a lot of room for innovation and disruption. Therefore, new ventures are more likely to be favored over acquisitions as a means of entering a new business area. In contrast, in a mature or declining industry, established players have already captured market share and may be better positioned for acquisitions rather than investing in new ventures.

In Which of the Following Industry Environments Are New Ventures