Which of the following is a potential benefit of forming a strategic alliance?
A)It primarily helps both firms in accomplishing their short-term operational goals.
B)It enables one of the organizations in the alliance to gain a competitive advantage over the other.
C)It leads to market expansion and greater penetration of current markets.
D)It typically reduces the market risk of introducing a new product.

Question

Quizplus · Accepted Answer

Forming a strategic alliance allows both firms to combine their resources and expertise, which can lead to market expansion and greater penetration of current markets. This can result in increased profits and growth opportunities for both organizations. Option A is incorrect because strategic alliances are typically formed with the intention of achieving long-term goals, not short-term operational goals. Option B is incorrect because the goal of a strategic alliance is not to give one organization a competitive advantage over the other, but rather to create mutual benefits. Option D is incorrect because there is no guarantee that forming a strategic alliance will reduce the market risk of introducing a new product.

Which of the Following Is a Potential Benefit of Forming