Which of the Following Is a Drawback of Entering into Strategic

question 14

Multiple Choice

Which of the following is a drawback of entering into strategic alliances with independent suppliers?

• A) The firm loses out on many of the benefits arising from investments in specialized assets.
• B) The strategic relationship between a firm and each of its essential suppliers is not market-mediated.
• C) The firm risks giving away key technological know-how to a potential competitor.
• D) It cannot be terminated even if the supplier fails to perform.
• E) They are short-term relationships in which firms have stronger bargaining power than their suppliers.

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