A company considering entering an industry that is in the mature stage of its life cycle would generally prefer which of the following entry strategies?
A) Joint ventures
B) New ventures
C) Taper integration
D) Long-term contracting
E) Acquisitions

Question

Quizplus · Accepted Answer

Acquisitions would be the best choice for a company considering entering an industry that is in the mature stage of its life cycle. This is because in a mature industry, there are likely to be many established competitors with a significant market share, making it difficult for a new entrant to gain traction. An acquisition allows the company to gain an instant foothold in the industry by acquiring an established player, allowing them to benefit from their existing customer base, intellectual property, and market knowledge. Additionally, with an acquisition, the company can quickly and efficiently eliminate competition and consolidate their market position.

A Company Considering Entering an Industry That Is in the Mature