Final answer:
It is true that channel partners enable access to new business opportunities at reduced cost, sharing risk and contributing complementary skills, thereby fostering growth without significant capital investments.
Step-by-step explanation:
It is true that channel partners can help businesses gain access to new business opportunities at lower costs without the need to merge or acquire more assets and employees. Channel partners can share responsibility and risk, and they may bring complementary skills to manage the business more effectively. This collaborative arrangement allows businesses to grow without the significant capital investment that is typically required for mergers or acquisitions.
Through business growth strategies such as forming alliances with channel partners, companies can leverage the existing networks, knowledge, and skills of these partners to expand into new markets. This method is often more cost-effective than attempting to build presence organically or through corporate expansion, which would involve heavy investments in new plants, equipment, and hiring additional employees. By using partnerships, businesses can focus on their core competencies while utilizing the joint advantage for a competitive edge.