1. The three principal advantages of strategic alliances over vertical integration or
mergers/acquisitions are they lower investment costs and risks for each partner. They also
are able to move more rapidly and they allow more adaptive responses to change.
2. Making commitments to their partners, building relationships and trust and creating a
system for managing alliances can help form a successful strategic alliance.
3. Vertically integrated companies are not always up to date with technology. A company
using vertical integration will often stick with older technology to avoid the costs of
upgrading. Also, with vertical integration economies of scale may not be recognized. This
can be due to their production levels being to low. In addition vertical integration increases
the company’s needed investment, which can lead to increased risk. Finally when
integrating vertically problems with capacity matching can be a problem. When integrating
across several production stages in cost efficient ways can be difficult.
4. H
5. J
6. Outsourcing can lead to activities being performed better or more cheaply but outsiders.
It also allows a company to focus its time to activities that it is best at such as its core
competencies. It also reduces the company’s level of risk.
1. The three principal advantages of strategic alliances over vertical integration or
mergers/acquisitions are they lower investment costs and risks for each partner. They also
are able to move more rapidly and they allow more adaptive responses to change.
2. Making commitments to their partners, building relationships and trust and creating a
system for managing alliances can help form a successful strategic alliance.
3. Vertically integrated companies are not always up to date with technology. A company
using vertical integration will often stick with older technology to avoid the costs of
upgrading. Also, with vertical integration economies of scale may not be recognized. This
can be due to their production levels being to low. In addition vertical integration increases
the company’s needed investment, which can lead to increased risk. Finally when
integrating vertically problems with capacity matching can be a problem. When integrating
across several production stages in cost efficient ways can be difficult.
4. H
5. J
6. Outsourcing can lead to activities being performed better or more cheaply but outsiders.
It also allows a company to focus its time to activities that it is best at such as its core
competencies. It also reduces the company’s level of risk.
1. The three principal advantages of strategic alliances over vertical integration or
mergers/acquisitions are they lower investment costs and risks for each partner. They also
are able to move more rapidly and they allow more adaptive responses to change.
2. Making commitments to their partners, building relationships and trust and creating a
system for managing alliances can help form a successful strategic alliance.
3. Vertically integrated companies are not always up to date with technology. A company
using vertical integration will often stick with older technology to avoid the costs of
upgrading. Also, with vertical integration economies of scale may not be recognized. This
can be due to their production levels being to low. In addition vertical integration increases
the company’s needed investment, which can lead to increased risk. Finally when
integrating vertically problems with capacity matching can be a problem. When integrating
across several production stages in cost efficient ways can be difficult.
4. H
5. J
6. Outsourcing can lead to activities being performed better or more cheaply but outsiders.
It also allows a company to focus its time to activities that it is best at such as its core
competencies. It also reduces the company’s level of risk.
1. The three principal advantages of strategic alliances over vertical integration or
mergers/acquisitions are they lower investment costs and risks for each partner. They also
are able to move more rapidly and they allow more adaptive responses to change.
2. Making commitments to their partners, building relationships and trust and creating a
system for managing alliances can help form a successful strategic alliance.
3. Vertically integrated companies are not always up to date with technology. A company
using vertical integration will often stick with older technology to avoid the costs of
upgrading. Also, with vertical integration economies of scale may not be recognized. This
can be due to their production levels being to low. In addition vertical integration increases
the company’s needed investment, which can lead to increased risk. Finally when
integrating vertically problems with capacity matching can be a problem. When integrating
across several production stages in cost efficient ways can be difficult.
4. H
5. J
6. Outsourcing can lead to activities being performed better or more cheaply but outsiders.
It also allows a company to focus its time to activities that it is best at such as its core
competencies. It also reduces the company’s level of risk.
1. The three principal advantages of strategic alliances over vertical integration or
mergers/acquisitions are they lower investment costs and risks for each partner. They also
are able to move more rapidly and they allow more adaptive responses to change.
2. Making commitments to their partners, building relationships and trust and creating a
system for managing alliances can help form a successful strategic alliance.
3. Vertically integrated companies are not always up to date with technology. A company
using vertical integration will often stick with older technology to avoid the costs of
upgrading. Also, with vertical integration economies of scale may not be recognized. This
can be due to their production levels being to low. In addition vertical integration increases
the company’s needed investment, which can lead to increased risk. Finally when
integrating vertically problems with capacity matching can be a problem. When integrating
across several production stages in cost efficient ways can be difficult.
4. H
5. J
6. Outsourcing can lead to activities being performed better or more cheaply but outsiders.
It also allows a company to focus its time to activities that it is best at such as its core
competencies. It also reduces the company’s level of risk.
1. The three principal advantages of strategic alliances over vertical integration or
mergers/acquisitions are they lower investment costs and risks for each partner. They also
are able to move more rapidly and they allow more adaptive responses to change.
2. Making commitments to their partners, building relationships and trust and creating a
system for managing alliances can help form a successful strategic alliance.
3. Vertically integrated companies are not always up to date with technology. A company
using vertical integration will often stick with older technology to avoid the costs of
upgrading. Also, with vertical integration economies of scale may not be recognized. This
can be due to their production levels being to low. In addition vertical integration increases
the company’s needed investment, which can lead to increased risk. Finally when
integrating vertically problems with capacity matching can be a problem. When integrating
across several production stages in cost efficient ways can be difficult.
4. H
5. J
6. Outsourcing can lead to activities being performed better or more cheaply but outsiders.
It also allows a company to focus its time to activities that it is best at such as its core
competencies. It also reduces the company’s level of risk.
1. The three principal advantages of strategic alliances over vertical integration or
mergers/acquisitions are they lower investment costs and risks for each partner. They also
are able to move more rapidly and they allow more adaptive responses to change.
2. Making commitments to their partners, building relationships and trust and creating a
system for managing alliances can help form a successful strategic alliance.
3. Vertically integrated companies are not always up to date with technology. A company
using vertical integration will often stick with older technology to avoid the costs of
upgrading. Also, with vertical integration economies of scale may not be recognized. This
can be due to their production levels being to low. In addition vertical integration increases
the company’s needed investment, which can lead to increased risk. Finally when
integrating vertically problems with capacity matching can be a problem. When integrating
across several production stages in cost efficient ways can be difficult.
4. H
5. J
6. Outsourcing can lead to activities being performed better or more cheaply but outsiders.
It also allows a company to focus its time to activities that it is best at such as its core
competencies. It also reduces the company’s level of risk.
1. The three principal advantages of strategic alliances over vertical integration or
mergers/acquisitions are they lower investment costs and risks for each partner. They also
are able to move more rapidly and they allow more adaptive responses to change.
2. Making commitments to their partners, building relationships and trust and creating a
system for managing alliances can help form a successful strategic alliance.
3. Vertically integrated companies are not always up to date with technology. A company
using vertical integration will often stick with older technology to avoid the costs of
upgrading. Also, with vertical integration economies of scale may not be recognized. This
can be due to their production levels being to low. In addition vertical integration increases
the company’s needed investment, which can lead to increased risk. Finally when
integrating vertically problems with capacity matching can be a problem. When integrating
across several production stages in cost efficient ways can be difficult.
