Not having the resources or capabilities to go ahead independently drives managerial executives to either go for an alliance or acquisition. Interestingly, although executives talk about acquisitions and alliances in the same breath, few address them as alternative channels by which organizations can attain objectives. Most organizations do not compare the two strategies, resulting in they entering into collaborations when they should have acquired or vice-versa.
Having understood the lifecycle of an alliance, a point worth debating at this stage is why do organizations decide to go for an alliance and not for an acquisition or vice-versa. For example as illustrated in Figure 9.1, why did Microsoft enter into ...
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