Internal Start-Up and its Key Concept

Question

Illustrates term Internal Start-Up with Key Concept?

Answer 1

Internal Start-Up:

1. Achieving diversification through internal start-up engages making a new business subsidiary from scratch.

2. This entry choice takes longer than the acquisition choice and poses some hurdles.

Key Concept:

The biggest disadvantage to entering an industry by forming an internal start-up are the prices of overcoming entry barriers and the more time it takes to make a profitable and strong competitive position.