CLEP Marketing Practice Exam 2026 – All-in-One Guide to Achieve Top Scores!

Acquiring firms at the same channel level usually aims to achieve increased monopoly power. When companies in the same industry or sector decide to merge or acquire one another, they consolidate their market position. This strategy can lead to fewer competitors in the market, allowing the acquiring company to increase its control over pricing, production, and other competitive advantages. As a result, the company can leverage its expanded influence within the market to dictate terms more favorably.

The focus on acquiring firms at the same level often doesn't directly address product quality or the diversity of products, as those areas may involve different types of acquisitions or strategies. Expanded distribution networks are typically achieved through vertical acquisitions, where companies at different levels of the supply chain come together. Hence, the correct answer highlights the strategic benefits of consolidating power within the same level of the market structure.