Which statement best explains the implication of a successful acquisition on competitive positioning?

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A successful acquisition can lead to increased market share for the acquiring company, thereby enhancing its competitive positioning within the industry. When a company acquires another, it often gains access to a broader customer base, established distribution channels, and potentially new product lines. This expansion can strengthen the company’s ability to compete against rivals and can improve its overall market presence.

Furthermore, by integrating the resources and capabilities of both organizations, the acquiring company may achieve synergies, allowing for efficiencies in operations and potentially leading to higher revenues. This growth in market share is crucial as it may also provide the company with improved negotiating power with suppliers and greater visibility among consumers.

The other options highlight scenarios that generally do not capture the traditional benefits gained through successful acquisitions, such as monopolistic control, decreased pricing power, or lowered profitability. These aspects are often more complex and could occur depending on the nature of the acquisition and the market environment but are not definitive implications of a successful acquisition itself.

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