According to Research by Dovev Lavie, Which of the Following

question 26

Multiple Choice

According to research by Dovev Lavie, which of the following best describes the bilateral competition strategy?

• A) Set organizational and technological buffers between competing partners
• B) Avoid partners that compete in your industry if they enjoy superior bargaining power
• C) Learn and assimilate network resources in order to develop new skills and capabilities
• D) Align organizational units and create a coherent interface with each partner in the alliance

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Definitions:

Ownership Of Scarce Inputs

The possession and control over resources that are limited in nature and necessary for production.

Network Externalities

The effect that one user of a good or service has on the value of that product to other people, where the value increases as the number of users rises.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Natural Monopoly

A monopoly that exists when increasing returns to scale provide a large cost advantage to having all output produced by a single firm.