Question

Of the various business-level strategic alliances, __________ alliances have the most probability of creating sustainable competitive advantage, and __________ have the lowest. Group of answer choices vertical complementary; competition-reducing uncertainty-reducing; competition-reducing competition-reducing; horizontal complementary horizontal complementary; vertical complementary

Answer 1

Answer:

Of the various business-level strategic alliances, VERTICAL COMPLEMENTARY alliances have the most probability of creating sustainable competitive advantage, and COMPETITION REDUCING have the lowest.

Explanation:

A vertical complementary alliance takes place between a manufacturer and a supplier that come together. This usually happens through a requirements contract where the supplier agrees to only sell its materials, components and parts to the manufacturer and the manufacturer agrees to only purchase the components, materials and parts needed from that specific supplier.

On the other hand, competition reducing alliances are generally horizontal alliances where companies agree to work together in order to reduce uncertainty, instead of focusing on gaining market share.