Strategic alliances:
A)Slow the speed of entry into a new field or market
B)Are considered a more risky diversification option than mergers
C)Encourage the entry of new competitors
D)Are often motivated by the desire to share resources across companies
E)Are associated with low levels of administrative costs

Question

Quizplus · Accepted Answer

Strategic alliances are often motivated by the desire to share resources across companies, such as technology or distribution channels. This can lead to cost savings and increased efficiency. However, strategic alliances do not necessarily slow the speed of entry into a new field or market, and they may not encourage the entry of new competitors. While they may be less risky than mergers, they still carry some risk. The level of administrative costs associated with strategic alliances can vary depending on the specific arrangement.

Strategic Alliances