The stability of a firm's competitive context will determine the suitability of an alliance.

Question

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The stability of a firm's competitive context is an important factor to be considered while deciding the suitability of an alliance. If the competitive context is stable, an alliance can be a good option as it can help the firms to pool their resources, share risks, and reduce costs. On the other hand, if the competitive context is highly volatile and unpredictable, an alliance may not be a good option as it may not provide the desired benefits and may even lead to more risks and uncertainties. Therefore, the stability of a firm's competitive context is a key determinant of the suitability of an alliance.

The Stability of a Firm's Competitive Context Will Determine the Suitability