Apple Inc.'s Strategic Decision to Acquire Beats Electronics
Why did Apple Inc. decide to acquire Beats Electronics and Beats Music in 2014 instead of entering a joint venture?
A. was an effective way to hurdle entry barriers, was quicker than trying to launch a brand-new start-up or joint venture operation, and allowed Apple Inc. to move directly to the task of building a strong position in the target industry.
Answer:
A. was an effective way to hurdle entry barriers, was quicker than trying to launch a brand-new start-up or joint venture operation, and allowed Apple Inc. to move directly to the task of building a strong position in the target industry.
Apple Inc. chose to acquire Beats Electronics and Beats Music in 2014 because it was an effective strategy for entering a new industry in headphones and streaming music services. This decision allowed Apple to overcome entry barriers, such as intellectual property rights, more quickly than by starting a new venture. By acquiring Beats, Apple could immediately establish a strong position in the industry without delays.
Acquiring Beats also helped Apple gain a competitive advantage in the industry, ensuring the diversification move would add value for shareholders. By skipping the process of launching a new startup or joint venture, Apple saved time and resources, enabling them to focus on building a strong presence in the target market.