Which of the these are common reasons why companies enter into strategic alliances quizlet?

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Alliance management is considered an organizational capability and:

A. develops over time, out of effort and learning.

B. decreases a company's knowledge assets.

C. creates successful strategic alliances.

D. decreases a company's knowledge capabilities.

E. rapidly transfers assets into the strategic alliance.
Alliance management is an organizational capability, much like any other. It develops over time, out of effort, experience, and learning. For this reason, it is wise to begin slowly, with simple alliances designed to meet limited, short-term objectives.

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Which of these are common reasons why companies enter into strategic alliances?

A company may enter into a strategic alliance to expand into a new market, improve its product line, or develop an edge over a competitor. The arrangement allows two businesses to work toward a common goal that will benefit both.

What are the reasons for forming a strategic alliance quizlet?

Strategic alliances rationales. - To achieve economies of scale and of learning. - To gain access to the benefits of other firm's assets. - To share costs and risks of innovation.

Why might two companies choose to form a strategic alliance rather than pursuing a merger or acquisition?

Advantages of business alliances include access to and sharing of skills, products, and markets at a lower overall cost without the need for M&A. Disadvantages are limited control in some instances, profit sharing, and potential loss of trade secrets and skills to competitors.

What is the most important factor in a strategic alliance?

The most outstanding factors affecting alliance success are shown to be a good relationship with the partner, mutual trust, a minimum commitment between the parties, and clear objectives and strategy.

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