SpeakEasy, a U.S. software company that specializes in voice-recognition software, wishes to rapidly enter the growing technical translation software market. This market is dominated by firms making highly differentiated products. To enter this market, SpeakEasy would be best served if it considers a(an):
A) vertical acquisition of a firm that uses technical translation products.
B) acquisition of a highly related firm in the technical translation market.
C) cross-border merger, preferably with an Indian or Chinese company.
D) strategy of internally developing the technical translation products needed to compete in this market.

Question

Quizplus · Accepted Answer

To rapidly enter a market dominated by firms with highly differentiated products, SpeakEasy would benefit from acquiring a highly related firm in the technical translation market. This would allow them to leverage the expertise and established network of the acquired firm, while also gaining access to their differentiated products and customer base. This would be a faster and more efficient strategy than developing the products internally or entering a cross-border merger that may not provide the same level of synergy. A vertical acquisition may also be an option, but it would require more resources and a larger integration process.