Acquisition of an existing firm rather than via internal development may be the least risky and cost-efficient means of overcoming entry barriers such as
A)rapidly building a strong market presence.
B)moving directly to the task of transferring resources and personnel,and integrating and redirecting activities into the acquiring firm's operation.
C)gaining access to local distribution networks,building supplier networks,and establishing working relationships with key government officials.
D)fast-tracking exports into a foreign market by marketing indirectly through local rivals.
E)putting the acquiring firm's strategy into place.

Question

Quizplus · Accepted Answer

Gaining access to local distribution networks, building supplier networks, and establishing working relationships with key government officials are significant entry barriers that can be efficiently overcome by acquiring an existing firm. This approach allows the acquiring company to leverage the established networks and relationships of the acquired firm, bypassing the time, cost, and risk associated with building these from scratch.

Acquisition of an Existing Firm Rather Than Via Internal Development