Firms form strategic alliances to defray cost and minimise risk.

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Firms often form strategic alliances to pool resources, share knowledge and expertise, and spread costs and risks. By forming an alliance or partnership with another company, firms can benefit from each other's strengths and capabilities, which can give them a competitive edge in the market. This can be particularly important for small or medium-sized enterprises that may not have the resources or expertise to go it alone.

Firms Form Strategic Alliances to Defray Cost and Minimise Risk