Question

1.) In recent years, Alibaba has purchased a variety of U.S. tech startups with technologies that may prove useful to it in the future or provide a method for entering the U.S. market to compete with Amazon, Ebay and PayPal. This type of diversification strategy is known as:

a.joint venture.

b.new internal venture.

c.acquisition.

d.related diversification.

2.) Alibaba currently offers a marketplace – Tmall – for world brands to sell their products to the emerging wealthy population of China. For these companies, China represents a:

a.Stagnant industry

b.Growth industry

c.Profitable country

d.Declining industry

3.) Alibaba's expansion into several ecommerce businesses is an example of:

a.related diversification.

b.internet diversification.

c.acquisition.

d.unrelated diversification.

4.) Alibaba has demonstrated skills in online market development. As it diversifies into online businesses to include ecommerce, online financial services and multi-seller marketplaces, the company is achieving a competitive advantage by:

a.utilizing unrelated diversification.

b.lacking distinct competencies.

c.product bundling.

d.transferring competencies.

Answer 1

1. The correct option is C. Acquisition

2. The correct option is b.Growth industry

3. The correct option is a.related diversification.

4. The correct option is d.transferring competencies.

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