External gGowth Strategies

Mergers & acquisitions is the pooling of interests to combine two or more firms into one. An acquisition is the outright purchase of one firm by another. In an acquisition, the surviving firm is called the acquirer, and the firm that is acquired is called the targe

Licensing is the granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions.

Strategic alliances is a partnership between two or more firms that is developed to achieve a specific goal. Various studies show that participation in alliances can boost a firms rate of patenting,20 product innovation,21 and foreign sales

Joint ventures is an entity created when two or more firms pool a portion of their resources to create a separate, jointly owned organization.

Franchising s an agreement between a franchisor (the parent company that has a proprietary product, service, or business method) and a franchisee (an individual or firm that is willing to pay the franchisor a fee for the right to sell its product, service, and/or use its business method). U.S. firms can sell franchises in foreign markets, with the reverse being true as well.

Describe what each external growth strategy would look like for this company. The external growth strategies are listed above. Mention specific organizations or types of organizations that they would engage with for their external growth strategies.

Example:

	External growth strategies (relies on establishing relationships with third parties)
	Growth Strategy	Example for your Company
1	Strategic Alliance	Since the company creates software and licenses to hospitals, they should enter a strategic alliance with a VPN or network security firm to develop a specialized way to encrypt and protect medical data

	External growth strategies (relies on establishing relationships with third parties)
	Growth Strategy	Example for your Company
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