Arnold Schwartz, CEO and founder of Schwartz Engineering, has repeatedly rebuffed efforts by other firms to draw Schwartz Engineering into strategic alliances. Schwartz Engineering has built its highly successful business around proprietary processes invented by Mr. Schwartz in the 1980s. Mr. Schwartz is concerned that his firm will be required to share the sources of its competitive advantage with alliance partners. This is a reasonable fear.

Question

Quizplus · Accepted Answer

Strategic alliances often involve sharing of resources and knowledge, including proprietary processes, which can potentially dilute a company's competitive advantage. Therefore, Mr. Schwartz's concern is reasonable.

Arnold Schwartz, CEO and Founder of Schwartz Engineering, Has Repeatedly