Question

Qualcomm, a high-tech company headquartered in San Diego, owns the rights to several of the key components that permit cell phones to work. Instead of selling cell phones itself, Qualcomm grants permission to many companies to use specific forms of its intellectual property in exchange for monetary compensation. Qualcomm in engaging in an external growth strategy referred to as_______________.

Answer 1

Qualcomm in engaging in an external growth strategy referred to as licensing.

Explanation:

External development (or inorganic growth) approaches include growing the output or scope of companies through capital and capabilities that the organisation itself does not build internally. Instead, the merger with / acquiring or partnership with other companies generates these resources.

These assets are then purchased by merging/acquiring or partnering with other businesses. Therefore, external expansion approaches can be divided up between the M&A (M&A) and Strategic Alliance (e.g. partnerships) strategies.