A potential disadvantage of establishing alliances with an established firm as part of an entrepreneurial strategy is that the alliance partner might use its size and power to control the business relationship.

Question

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When a smaller entrepreneurial firm establishes an alliance with an established firm, the bigger partner might use its size and power to dominate the partnership. This can lead to the smaller firm's loss of control over the business relationship, which can be a disadvantage.

A Potential Disadvantage of Establishing Alliances with an Established Firm