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discourage rival companies from merging with or acquiring the very companies that it is partnering with.B.reduce overall business risk and raise entry barriers into the newly emerging industry.C.help master new technologies and build new expertise and competencies, establish a stronger beachhead for paopportunities in the target industry.D.help defeat competitors that are employing broad differentiation strategies.E.enhance its chances of achieving global low-cost leadership.Whenever industries are experiencing high-velocity technological advances in many areas simultaneously, firms find it virtually essential to have cooperative relationships with other enterprises to stay on the leading edge of technology, even in their own area of specialization. In industries like these, alliances are all about fast cycles of learning, gaining quick access to the latest round of technological know-how, and developing dynamic capabilities. In bringing together firms with different skills and knowledge bases, alliances open up learning opportunities that help partner firms better leverage their own resources and capabilities.AACSB: Analytical ThinkingAccessibility: Keyboard Navigation
Blooms: UnderstandDifficulty: 2 MediumLearning Objective: 06-06 When and how strategic alliances can substitute for horizontal mergers and acquisitions or vertical integration and how they can facilitate outsourcing.Topic: Strategic Alliance77.Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?A.picking a good partnerB.recognizing that the alliance must benefit both sidesC.minimizing the amount of resources that the partners commit to the allianceD.ensuring that both parties live up to their commitmentsE.structuring the decision-making process so actions can be taken swiftly when neededThe merits of strategic alliances and collaborative partnerships are: Picking a good partner; being sensitive to cultural differences; recognizing that the alliance must benefit both sides; ensuring that both parties live up to their commitments; structuring the decision-making process so that actions can be taken swiftly when needed; managing the learning process and then adjusting the alliance agreement over time to fit new circumstances.AACSB: Analytical Thinking
Accessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 06-06 When and how strategic alliances can substitute for horizontal mergers and acquisitions or vertical integration and how they can facilitate outsourcing.Topic: Strategic Alliance78.Strategic alliances are more likely to be long-lasting when they involveA.partners that respectively have considerable resource weaknesses in the marketplace.