Occasionally,two or more capable companies lack a necessary component for success in a particular competitive environment.The optimal strategy in such a case would be:
A) Concentric integration
B) Diversification
C) Conglomerate diversification
D) Joint venture

Question

Quizplus · Accepted Answer

Joint venture is the best choice in such a scenario where two or more capable companies lack a necessary component for success in a particular competitive environment. Joint venture allows companies to combine resources, expertise, and capabilities to achieve a common goal. It helps in sharing risks, costs, and rewards, and also enables companies to enter into new markets or industries. Joint venture provides an opportunity to leverage the strengths of each partner, and therefore, it is the most suitable strategy in this situation.

Occasionally,two or More Capable Companies Lack a Necessary Component for Success