According to the real options theory, Greenfield ventures is advantageous as it provides a business with an opportunity to establish new subsidiary units in the market. Besides, the business becomes a wholly-owned subsidiary, a factor that makes it maintain full control. However, in the case of Telefonica, the acquisition was popular since it had better acquisition-based strategic flexibility. Besides, using Greenfield involves buying land and building new facilities in the new markets and may take a lot of time.
Telefonica has used acquisitions, rather than greenfield ventures, as its entry strategy. Why do you think this has been the case? What are the potential risks associated with this entry strategy?
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Academic.Tips. (2021) 'Telefonica has used acquisitions, rather than greenfield ventures, as its entry strategy. Why do you think this has been the case? What are the potential risks associated with this entry strategy'. 8 June.
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Academic.Tips. (2021, June 8). Telefonica has used acquisitions, rather than greenfield ventures, as its entry strategy. Why do you think this has been the case? What are the potential risks associated with this entry strategy? https://academic.tips/question/telefonica-has-used-acquisitions-rather-than-greenfield-ventures-as-its-entry-strategy-why-do-you-think-this-has-been-the-case-what-are-the-potential-risks-associated-with-this-entry-strategy/
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Academic.Tips. 2021. "Telefonica has used acquisitions, rather than greenfield ventures, as its entry strategy. Why do you think this has been the case? What are the potential risks associated with this entry strategy?" June 8, 2021. https://academic.tips/question/telefonica-has-used-acquisitions-rather-than-greenfield-ventures-as-its-entry-strategy-why-do-you-think-this-has-been-the-case-what-are-the-potential-risks-associated-with-this-entry-strategy/.
1. Academic.Tips. "Telefonica has used acquisitions, rather than greenfield ventures, as its entry strategy. Why do you think this has been the case? What are the potential risks associated with this entry strategy?" June 8, 2021. https://academic.tips/question/telefonica-has-used-acquisitions-rather-than-greenfield-ventures-as-its-entry-strategy-why-do-you-think-this-has-been-the-case-what-are-the-potential-risks-associated-with-this-entry-strategy/.
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Academic.Tips. "Telefonica has used acquisitions, rather than greenfield ventures, as its entry strategy. Why do you think this has been the case? What are the potential risks associated with this entry strategy?" June 8, 2021. https://academic.tips/question/telefonica-has-used-acquisitions-rather-than-greenfield-ventures-as-its-entry-strategy-why-do-you-think-this-has-been-the-case-what-are-the-potential-risks-associated-with-this-entry-strategy/.
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"Telefonica has used acquisitions, rather than greenfield ventures, as its entry strategy. Why do you think this has been the case? What are the potential risks associated with this entry strategy?" Academic.Tips, 8 June 2021, academic.tips/question/telefonica-has-used-acquisitions-rather-than-greenfield-ventures-as-its-entry-strategy-why-do-you-think-this-has-been-the-case-what-are-the-potential-risks-associated-with-this-entry-strategy/.
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