Discussion post – Acquisition or Alliance?

Please complete with a min. of 200 words

Identifying new sources of energy has been an important business opportunity for quite some time. Your firm is interested in acquiring geothermal and solar energy firms around the world that can offer the best growth potential. As part of the leadership team, you must choose between an acquisition or alliance strategy. Discuss some of the advantages and disadvantages of these two strategic approaches.

Solution Preview

Acquisition and alliances are powerful strategies that organization use to strengthen an organization impact on external growth. These strategies are known to work perfectly well with large companies. The strategic acquisition can help in the growth of a business, some of the advantages of using this strategy include.

Speed- acquisition offers the opportunity for a company to acquire resources and gain more competency quickly
Broadening the company’s target audience- this is advantageous in terms of the company gets to tap into an existing market that the company bought had already attracted
Reduced entry barrier- if a company acquire another company, there is a possibility of decreasing the risk of competitive reaction

(384 words)