Identify a way firms create value through alliance.

Question

Quizplus · Accepted Answer

Firms create value through alliance by combining their unique resources, such as technical knowledge, distribution networks, and marketing expertise. This allows companies to access resources that they may not have been able to develop or obtain on their own, ultimately resulting in increased competitiveness and profitability. Pooling trade secrets (A) may not always be legal or ethical, and increasing transaction costs (C) would not create value. While creating new industry-specific resources (D) could potentially create value, it is not necessarily a direct result of forming an alliance.

Identify a Way Firms Create Value Through Alliance