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Strategic alliances are preferred to solo ventures in facilitating market entry when the value of market...

Strategic alliances are preferred to solo ventures in facilitating market entry when the value of market entry is:

Low

Moderate

Uncertain

Well-understood

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Answer #1

When information available is a sufficient to decide whether an entry or exit is profitable or not, there is no need for a strategic alliance because firms can themselves decide whether they should enter or not using the cost benefit analysis. However when there is uncertainty in the market towards the entry or the exit, it is better to have a strategic alliance with an existing firm that has some idea of the market operations

Select uncertain

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