Corporate Strategy | Online Course Support

Your company is looking to diversify into a new business. You have short-listed a partner who can provide you with the key resource you need to operate in the new business. Your trusted advisor tells you that this resource is easily substitutable. On this criteria alone (keeping everything else constant), what should you go for?


Instead of sharing the returns to the resource with a partner (alliance, inorganic growth) or paying a substantial amount up-front for the resource (M&A, inorganic growth), you could build another, and possibly cheaper, resource (organic growth), while avoiding some of the costs of equity such as uncertainty and control premium.

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