Which of the following is a disadvantage of strategic alliances?
A) They give competitors a low-cost route to new technology and markets.
B) They do not facilitate entry into a foreign market.
C) They do not allow for sharing of risks and fixed costs.
D) They mandate that the companies do not share complementary competencies and assets.
E) They cause problems when it comes to establishing technological standards for the industry.

Question

Quizplus · Accepted Answer

Strategic alliances can give competitors a low-cost route to new technology and markets by allowing them to access the knowledge and resources of the partnering company without having to invest heavily in research and development or market entry strategies. This can result in increased competition and reduced profit margins for the original company.

Which of the Following Is a Disadvantage of Strategic Alliances