Which of the following is a disadvantage of a firm that enters long-term alliances?

Question

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Long-term alliances involve commitments with partners for an extended period, which can limit a firm's strategic flexibility. The firm may have to make concessions or sacrifices to maintain the alliance, even if it conflicts with its long-term goals. This can be a disadvantage in dynamic markets where the firm needs to adapt to changing conditions quickly. Option A is incorrect because the firm can still achieve economies of scale in some cases through its alliance. Option B is incorrect because the firm can usually negotiate termination clauses in its alliance agreements. Option C is incorrect because it is not necessarily true that an alliance prevents a firm from capturing the benefits of vertical integration. Option E is incorrect because a firm can still build on its skills and capabilities through partnerships.

Which of the Following Is a Disadvantage of a Firm