Inorganic Market Entry
Entering a market through mergers, acquisitions, or partnerships with existing players in the market.
Implications
The process of entering a new market through acquisitions, joint ventures, or strategic partnerships, rather than establishing operations organically, often used to overcome barriers to entry, quickly gain market share, or leverage existing market expertise.
Example
Example: An automotive company enters the electric vehicle market through inorganic market entry by acquiring a startup with advanced battery technology, instantly positioning itself as a player in the emerging EV sector.
Related Terms
Different from organic market entry, which involves building a presence through internal efforts like setting up new facilities or hiring local staff, inorganic market entry leverages existing entities to establish a foothold more rapidly.
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