One of the motives that prompt firms to enter into partnerships is:
A)creating longer distribution channels.
B)raising barriers to entry.
C)promoting the use of technology to facilitate customer orientation.
D)avoiding vertical and horizontal integration.

Question

Quizplus · Accepted Answer

One of the primary motives for firms to enter partnerships is to raise barriers to entry. By forming a strategic partnership, firms can limit the entry of new competitors into the market, and create a competitive advantage for themselves. This can be achieved through a number of mechanisms such as pooling resources, sharing expertise, enhancing brand value, and expanding the scope of the business.

One of the Motives That Prompt Firms to Enter into Partnerships