Firms participate in strategic alliances for all the following reasons EXCEPT to
A) reduce competition.
B) enhance their competitive capabilities.
C) gain access to resources.
D) retain tight control over intangible core competencies.

Question

Quizplus · Accepted Answer

Firms typically form strategic alliances to reduce competition, enhance their competitive capabilities, and gain access to resources. Retaining tight control over intangible core competencies usually goes against the purpose of a strategic alliance, which is to share resources and knowledge with another firm. Firms may enter into a strategic alliance precisely because they recognize that they do not possess all the necessary capabilities themselves.

Firms Participate in Strategic Alliances for All the Following Reasons