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Which of the Following Is a Drawback of Entering into Strategic

Question 108

Multiple Choice

Which of the following is a drawback of entering into strategic alliances with independent suppliers?


A) The firm loses out on many of the benefits arising from investments in specialized assets.
B) The strategic relationship between a firm and each of its essential suppliers is not market-mediated.
C) The firm risks giving away key technological know-how to a potential competitor.
D) It cannot be terminated even if the supplier fails to perform.
E) They are short-term relationships in which firms have stronger bargaining power than their suppliers.

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