The main advantage to a firm forming a strategic alliance is that:
A) it is a more effective diversification strategy than the traditional conglomerate approach.
B) it is inexpensive.
C) it is cost- effective.
D) it is perceived as being "with it."
E) it acquires the ability to operate beyond its capabilities.

Question

Quizplus · Accepted Answer

A strategic alliance allows a firm to leverage the strengths of its partner to operate beyond its current capabilities. This can lead to increased competitiveness and market share. While it may not always be cost-effective or inexpensive, the ability to expand capabilities is a key advantage of strategic alliances.

The Main Advantage to a Firm Forming a Strategic Alliance