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10/5/18, 6)02 PMCollection – MSA 603 Strategic Planning for the Admin ...

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Thread: DB 3 Week 6 Post: DB 3 Week 6 Author:

Posted Date: October 3, 2018 8:30 PM Status: Published Overall Rating:

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Brittany Rose

I would not recommend just one method for IBM to use when diversifying into the telecommunications industry. A combination of the internal new venturing and acquisition methods is what I would recommend to IBM. Internal new venturing would allow IBM to leverage the competencies they have developed in their current industry (hardware, middleware, and software for computers) and apply them to the telecommunications industry. With an acquisition, IBM is able to acquire a company that has the capital/infrastructure that would allow IBM to rapidly enter the telecommunications industry with little delay. IBM can combine the competencies they have with the infrastructure of the company they acquired to help create a competitive advantage in a new industry to IBM. With this combined diversification method strategy and the brand recognition that IBM already has, getting into the telecommunications industry would be fairly successful for them.

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