Prosthesis Inc.is developing a superior prosthetic leg and has world-renowned researchers on its staff.It also has the financial and marketing resources to take the product to the market as it has done in the past.Most likely,Prosthesis will not need take on a partner.
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Question 2
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Some firms avoid collaboration for fear of giving up their proprietary technologies.
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Question 3
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It is unusual for a company to lack certain complementary assets required to transform a body of technological knowledge into a commercial product.
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Question 4
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Building the necessary capabilities and resources in-house reduces a firm's asset commitment.
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Question 5
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Product life cycles shorten with high-speed technological changes.
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Question 6
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A firm cannot collaborate with its competitor.
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Question 7
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Firms can use strategic alliances to exploit their own capabilities by leveraging them in another firm's development efforts.
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Question 8
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FootsTrend Co.and AmazeDeals entered into an alliance.FootsTrend wanted access to online sales but did not have the same expertise in this field as Amaze Deals.AmazeDeals wanted to sell FootsTrend exercise mats from its online Web site.This is an example of quadrant C-individual alliance with capability transfer.
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Question 9
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A joint venture between two companies often results in a new separate company.
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Question 10
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Busche Copiers has developed and patented a new copy machine.It wishes to penetrate a wider market but is short on funds.It can use licensing arrangement to accomplish this goal.
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Question 11
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Licensing a technology from another firm is typically more expensive for a licensee than developing a new technology in-house.
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Question 12
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Collective research organizations can take the form of trade associations.
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Question 13
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Solo internal development is,on average,a relatively fast way of developing a technology.
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Question 14
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Joint ventures are less appropriate than strategic alliances when a firm places great importance on access to other firms' competencies.
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Question 15
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After licensing a technology,the firm typically has limited discretion over what it can do with the technology.
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Question 16
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A firm's effectiveness at managing its collaborations will increase with the number of collaborations to which it is committed.
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Question 17
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Strategic fit refers to the degree to which potential partners have resources that can be effectively integrated into a strategy that creates value.
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Question 18
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The pooling of supplementary resources can enable partners to achieve market power.
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Question 19
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Some collaboration agreements include provisions for periodic auditing either by the partner organizations or a third party.
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Question 20
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Equity ownership helps to align the incentives of the partners.