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Some researchers have argued that alliances can be used to help firms evaluate the economic potential...

Some researchers have argued that alliances can be used to help firms evaluate the economic potential of entering into a new industry or market. What, if anything, about an alliance makes this a better way to evaluate entry opportunities than alternatives? And, why couldn’t such a firm simply hire some smart managers, consultants, and industry experts to evaluate the economic potential of entering into a new industry?

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Alliances will help the company to understand their potential and helps to set new targets in the market.

For the learning purpose also the alliances are used. That is the company can use the alliance to gain knowledge about the market.

The company will be able to understand the opportunities

nities in the future.

If the company is hiring some consultants to make the alliances, the company people do not have the feeling or the experience that do it by themselves.

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