Denali Electronics Inc acquires its competitor Mariana Electronics Inc to gain

Denali electronics inc acquires its competitor

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customers rather than selling them through large departmental stores. Denali Electronics Inc. acquires its competitor, Mariana Electronics Inc., to gain access to its core competencies. Accordion Fascination Inc. outsources its production to contract manufacturers in labor- intensive countries. Denali Electronics acquiring its competitor, Mariana Electronics, to gain access to its core competencies best illustrates horizontal integration. Horizontal integration is the process of merging with a competitor at the same stage of the value chain. References Multiple Choice Difficulty: 3 Hard Learning Objective: 09-06 Define horizontal integration and evaluate the advantages and disadvantages of this option to execute corporate-level strategy. Which of the following is one of the reasons that firms make acquisitions? to shift the industry structure from oligopoly to perfect competition to move up a learning curve to standardize their product and service offerings and reduce the levels of differentiation to gain access to a new capability or competency Firms make acquisitions for two main reasons: to gain access to a new capability or competency, and to preempt rivals. References Multiple Choice Difficulty: 2 Medium Learning Objective: 09-07 Explain why firms engage in acquisitions.

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