An internal new venture is the most appropriate strategic choice when
A) an industry is mature.
B) the firm will enter on a small scale.
C) there is strong pressure for quick profitability.
D) speed of entry is the most important consideration.
E) a firm has competencies that can be leveraged.

Question

Quizplus · Accepted Answer

An internal new venture is a suitable strategic choice when the company has competencies that they can capitalize on. This means that the company has skills, resources, and knowledge that can be leveraged to create a new product or service. By using its existing core competencies, the company can create a competitive advantage in the market. This is more likely to lead to a successful launch than other situations such as when the industry is mature, the firm will enter on a small scale, there is strong pressure for quick profitability, or speed of entry is the most important consideration.

An Internal New Venture Is the Most Appropriate Strategic Choice