Question

To minimize potential problems in alliances, companies should most likely choose partners with ________. A. competitively...

To minimize potential problems in alliances, companies should most likely choose partners with ________. A. competitively sensitive technology B. complementary products and skills C. significant control of the target market D. superior bargaining power in the same industry

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Answer #1

To minimize potential problems in alliances, companies should most likely choose partners with complementary products and skills

The partnership will increase the companies profit margin, reduces the financial risks,accelerate economic growth and overcomes the trade and legal barriers. Most of the joint venture companies fails due to the incompatibility between partners. The choice of the perfect partner will provide the competitive benefits so it is very important to identify and understand the effective partner before initiating the joint venture. The primary selection criterion for selecting the partner is his ability to provide the technical skills and resources, that complement those of your organization. Different types of resources and skills which can be lead to successful strategic alliances.Ex: an alliance which includes one parent supplying technology and another manufacturing capabilities or furnishing marketing.

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