Experience Indicates That Strategic Alliances

question 12

Multiple Choice

Experience indicates that strategic alliances

• A)are generally successful.
• B)work well in cooperatively developing new technologies and new products but seldom work well in promoting greater supply chain efficiency.
• C)work best when they are aimed at achieving a mutually beneficial competitive advantage for the allies.
• D)stand a reasonable chance of helping a company reduce competitive disadvantage but very rarely form the basis of a durable competitive advantage over rivals.
• E)are usually a company's best approach to building a distinctive competence.

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Definitions:

Payoff Matrix

A table that shows the potential outcomes of different strategies in a decision-making process, typically used in game theory to analyze interactions between multiple players.

Duopoly

A market structure where only two sellers compete directly against each other, offering similar goods or services.

Collude

When two or more entities, often companies, agree to work together secretly, especially in an illegal or deceitful way, to deceive, mislead, or defraud others of their legal rights, or to obtain an unfair advantage.

Profit

The financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.