When a firm is overly dependent on one or more products or markets,and the intensity of rivalry in that market is intense,the firm may wish to______by making an acquisition.
A)increase new product speed to market
B)broaden its competitive scope
C)increase its economies of scale
D)overcome entry barriers

Question

Quizplus · Accepted Answer

If a firm is overly dependent on one or more products or markets and faces intense rivalry, it may wish to broaden its competitive scope through an acquisition. This will allow it to diversify its product or market portfolio, reducing dependence on any single product or market, and may also help it leverage its strengths in one market to gain advantages in another. Increasing new product speed to market may not address the fundamental issue of overdependence on a single product or market, while increasing economies of scale or overcoming entry barriers may not be as effective in addressing the intensity of rivalry.

When a Firm Is Overly Dependent on One or More