The principal advantages of strategic alliances over vertical integration or horizontal mergers/acquisitions are

A. potential profitability of the alliance and related experience-curve economics.
B. resource pooling and risk sharing, more adaptive response capabilities, and greater speed of deployment.
C. the facilitation of best practices, more production capacity, and relevant synergistic savings.
D. material additions to a company's technological capabilities, strengthening of the firm's competitive position, and boosting of its profitability.
E. the transactional and relational concept of operating practices and competencies.


Answer: B

Business

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