Question

Identify different challenges that exist for maintaining or strengthening an ongoing alliance versus beginning a new...

Identify different challenges that exist for maintaining or strengthening an ongoing alliance versus beginning a new relationship. Should this alliance occur? Why or why not?

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Answer #1

STRATEGIC ALLIANCES ARE THE agreements that the companies enter with the aim of developing new products and having access to new services and technologies. These alliances help resource sharing. The firm may chose to maintain an ongoing alliance or start new alliance. But maintaining an ongoing alliance is less challenging as starting anew alliance involves investment of more time and money. It is very risky to start a new alliance unless the companies have much experience in alliance management or have previously worked together. It involves long procedures of licensing and regulations. Some early conflicts such as cultural differences between the partners and communication barriers also make this new partnership less favorable

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