Which of the following is a disadvantage of strategic alliances?
A) They are the most expensive among the investment entry modes.
B) They increase the likelihood that one partner will try to take advantage of the other.
C) They create future competitors.
D) They fail to tap into their competitors' specific strengths.

Question

Quizplus · Accepted Answer

Strategic alliances can create future competitors as both parties involved may learn each other's strengths and weaknesses and use that knowledge to their advantage in the future. This can lead to a loss of competitive advantage for one or both of the partners in the alliance.

Which of the Following Is a Disadvantage of Strategic Alliances