Question

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

Answer 1

There are many reasons why alliances go sour. Most of the cases conflict arises when one partner feels that other partner is not doing enough for the alliance and all the good work is being done by one partner only. This happens when the skill sets of the partners are not well balanced. Due to such imbalances one partner ends up doing most of the things for progress of the alliance. In comparison, contribution from other partner becomes negligible.

Such situation will not occur if the attributes and skills of both partners are well balanced which would not allow arising of feeling that one is doing more than other. The skills also need to be complementary so that it does not create unnecessary conflict and both partners realise that it has to depend on skills of other partners to make a wholistic progress for the joint venture project.

Because of this logic, the correct answer in this case will be “ B. complementary products and skills “

TO MINIMIZE POTENTIAL PROBLEMS IN ALLIANCES , COMPANIES SHOULD MOST LIKELY CHOOSE PARTNERS WITH “B: Complementary products and skills”