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3.Imagine that IBM has decided to diversify into the telecommunications business to provide online cloud-computing data services and broad-band access for businesses and individuals. What method would you recommend that IBM pursue to enter this industry?ii.Entering into strategic alliances (joint ventures) with such firmsIn addition, the company might well use its own digital know-how to build thebusinesses.4.Under which conditions are joint ventures a useful way to enter new industries?
a.Joint ventures are useful in embryonic or growth industries because it allows acompany to share the risks and costs associated with establishing a business unitin the new industry with another company. Also, joint ventures are useful whencompanies want to be involved in new product markets and want to share thecosts and risks.