Question

Qualcomm, a high-tech company headquartered in San Diego, owns the rights to several of the key components that permit cell phones to work. Instead of selling cell phones itself, Qualcomm grants permission to many companies to use specific forms of its intellectual property in exchange for monetary compensation. Qualcomm in engaging in an external growth strategy referred to as ________.

a) strategic alliances
b) joint ventures
c) acquisitions
d) licensing
e) new product development

Answer 1

Qualcomm employs a strategy known as licensing to monetize its intellectual property by allowing other companies to utilize its technology for a fee.

Step-by-step explanation:

Qualcomm, a high-tech company headquartered in San Diego, grants permission to many companies to use specific forms of its intellectual property in exchange for monetary compensation. This practice is known as licensing, which is an external growth strategy. Licensing differs from strategic alliances, joint ventures, acquisitions, and new product development in that it involves Qualcomm allowing other companies to use its patented technology, possibly becoming a key supplier and maintaining competitive positioning while not directly selling the final consumer product.