A firm that enters long-term alliances may limit its strategic flexibility by the commitments it makes to its alliance partners.

Question

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Long-term alliances typically involve contractual agreements and commitments between the firms involved. These commitments can limit a firm's ability to pursue certain strategies or make certain decisions independently, as they must take into account the interests and needs of their alliance partner. As a result, a long-term alliance can reduce a firm's strategic flexibility.

A Firm That Enters Long-Term Alliances May Limit Its Strategic