Question

In: Operations Management

Through a strategic alliance, firms can establish a limited stake in a venture while maintaining the...

Through a strategic alliance, firms can establish a limited stake in a venture while maintaining the flexibility to either increase their commitment later or shift these resources to another opportunity.

true or false

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Expert Solution

Answer:

The correct answer is-True

Firms might use strategic alliances to access an important capability that's not possessed in-house or to a lot of absolutely exploit their own capabilities by investing them in another firm’s development efforts. corporations with totally different capabilities necessary for developing a brand new technology or penetrating a brand new market may kind alliances to pool their resources so put together they'll develop the merchandise of the market quicker or less expensively. Alliances will enhance a firm’s overall level of flexibility. Through associate degree alliance, corporations will establish a restricted stake during a venture whereas maintaining the pliability to either increase their commitment later to shift these resources to a different chance. corporations will use alliances to achieve associate degree early window on rising opportunities that they'll wish to attempt to a lot of absolutely within the future. Alliances conjointly modify a firm to chop-chop change the sort and scale of capabilities the firm will access, which may be terribly valuable in chop-chop ever-changing markets.


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