Startups that find themselves trying to compete for value with large, established firms that have strong negotiating power often focus on the acquisition of intellectual property and know-how that they can control and develop to where it is attractive to one of the dominant firms. True/false

Question

Brayden

Business

18 November, 19:32

Startups that find themselves trying to compete for value with large, established firms that have strong negotiating power often focus on the acquisition of intellectual property and know-how that they can control and develop to where it is attractive to one of the dominant firms. True/false

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Answers (1)

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Makhi York · Answer 1

That statement is true.

Explanation:

Start ups tends to have overwhelmingly lesser capital compared to large/established firms. This means that The Large firms will be able to outperform the start ups in terms of marketing, advertising, and production efficiency.

This will make the start ups' product became less known and more expensive in the market.

Because of this, they tend to focus on the acquisition of intellectual property.

When a start up acquire the right of intellectual property, larger companies could not legally create a similar product and compete with the start up directly.

This will make the start up able to sell their products without having to worry about being outperformed by the larger companies.