Circumstances of New Business Area: Internal New Venturing

What circumstances might it be right to go into a new business area by acquisition, and then what circumstances might internal new venturing be the preferred entry manner?

© SolutionLibrary Inc. 9836dcf9d7

Solution Preview

...layer. At this point the company can either merge or acquire a competitor and eliminate the competition.

Diversification is another reason why a business might want to acquire another company vs. building up a new business from bottom up. Companies diversifying through acquisition into the industry from other markets often leverage their resources to cause a shake-up, as Philip Morris did with Miller beer. The seriousness of the threat of entry depends on the barriers present and on the reaction from existing competitors that the entrant can ...