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Why would a firm decide to enter a new market on its own rather than using...

Why would a firm decide to enter a new market on its own rather than using a strategic alliance?

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Answer #1

There are many reason why firm might want to enter new market alone rather using strategic alliance. Some of most common reason are distribution of income, protection of proprietary information and strategic autonomy. A firm might want to protect proprietary information which it has to share if it goes into alliance consequently it will enter market alone.

Again if it went for alliance it will have to share profit with the partner and will have to seek permission of partner before taking any decision hence it will enter on it's own rather than using strategic alliance

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