Internal Start-Up and its Key Concept

Illustrates term Internal Start-Up with Key Concept?

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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.

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