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Management · Q54

Strategic Management

Graduate and Post Graduate · Management · question 54

Q54

In which of the following scenarios is a joint venture likely to be more attractive than acquisition?

A.
Horizontal integration
Answer
B.
Vertical integration
C.
New market entry
D.
Larger resource pool

Answer: Option A

Solution

Answer: Option A
Solution:
In Horizontal integration scenarios a joint venture is likely to be more attractive than acquisition. Horizontal integration is the acquisition of a business operating at the same level of the value chain in a similar or different industry.