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Which is not a principle advantage of strategic alliances over vertical integration or horizontal mergers/acquisitions

User Vega
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Answer:

A. resource pooling and risk sharing, more adaptive response capabilities, and greater speed of deployment

Step-by-step explanation:

Vertical or horizontal integration entails control or ownership of a company I'm the sense that one company acquired the other in order to reduce cost and increase efficiency as in vertical integration or reduce competition and increase profit as in horizontal integration. In vertical integration the company gains control of another company in a different level in the supply chain in order to reduce it's cost such as costs for raw materials. In horizontal integration, the company acquired another company in same supply chain level to gain more control of the market.

Vertical and horizontal integrations are different from strategic alliance where companies are involved in an agreement to support each other and benefit mutually and yet be independent organizations. Companies involved in this sort of arrangement pool resources and share the risk involved in the mutually beneficial project. Example of such agreement is the one between uber and spotify

Which is not a principle advantage of strategic alliances over vertical integration-example-1
Which is not a principle advantage of strategic alliances over vertical integration-example-2
User Rayhan
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