Final answer:
In choosing a strategic partner, a firm should not consider the competitor's market share. Instead, shared goals, complementary strengths, and cultural compatibility are key elements in the selection of a suitable strategic alliance partner.
Step-by-step explanation:
A firm contemplating a strategic alliance should consider various factors when selecting a partner to ensure the partnership is effective and mutually beneficial. However, the factor a firm should NOT consider is competitor's market share. When selecting a partner, a firm should focus on whether there are shared goals and values, if the potential partner has complementary strengths, and if there is compatibility of cultures between the firms. These factors can determine the success of the strategic alliance, whereas the competitor's market share is not directly relevant to the functionality and compatibility of the alliance itself.
Several competing corporations might join together in an association for various reasons. They might find strength in numbers, they could have common issues that affect an entire industry, and they might benefit from certain governmental policies. The synergy in these collaborations can lead to better advocacy, resource-sharing, and overall industry advancement.