Question

The biggest drawback of relying heavily on alliances and cooperative strategies is Multiple Choice1. that partners will not divide profits from the alliance in an equitable manner.2. that strategic allies and partners frequently become rivals in the marketplace.3. having to compromise the company's own priorities and strategies in reaching agreements with partners. 4. incurring excessive administrative expenses associated with engaging in collaborative efforts. 5. becoming dependent on other companies for essential expertise and capabilities.

Answer 1

Answer:

5. becoming dependent on other companies for essential expertise and capabilities.

Explanation:

Cooperatives and alliances are formed between parties to pool their resources towards a common goal. The parties involved tend to complement their strengths. Where one is weak, another one tends to provide the capability it needs and vice versa.

However when there is heavy reliance on alliances, the parties involved tend to abandon capability development in areas of weaknesses. This leads to dependence on other parties. They will be unable to survive alone.