Question

An alliance becomes "strategic" as opposed to just a convenient business arrangement when it serves all of the following strategic purposes EXCEPT:
A. builds, sustains, or enhances a core competence or competitive advantage.
B. blocks a competitive threat.
C. increases the bargaining power of alliance members over suppliers or buyers.
D. opens up important new market opportunities.
E. contracts out certain value chain activities that are normally performed in-house to outside vendors.

Answer 1

Answer:

E) contracts out certain value chain activities that are normally performed in-house to outside vendors.

Explanation:

A strategic alliance usually serves the following purposes:

• facilitate the achievement of an important business objective
• helps to build, strengthen, or sustain a core competence or competitive advantage (option A)
• helps to remedy an important resource deficiency or competitive weakness
• helps to defend against a competitive threat, or lower a significant risk (option B)
• increases bargaining power over suppliers or buyers (option C)
• helps to open new market opportunities (option D)
• speeds the development of new technologies and innovations