Answered Essay: When should firms rather choose to acquire knowledge, rather than merely accessing it in the context of

When should firms rather choose to acquire knowledge, rather than merely accessing it in the context of an alliance? and where are the Pros and Cons of an “acquisition approach”?

Expert Answer

When we use an alliance to get our work done with their knowledge , the work would be certainly done but not in our own terms. Moreover if that alliancce leaves us or decides not to work with us anymore,we will be left helpless. So it is very important for a firm to develop knowledge rather than depending on others. By doing so it can work on it’s own and need not worry about anything.

Acquisition approach is the method where a firm uses some other contractor to get it’s supplies which may also be called as outsourcing rather than to manufacture itself. It gets high quality material from suppliers to meet overseas standards.

Pros::

Advantages of this kind of approach are that we can get good quality material and work burden will be less on us .

Cons:

The major disadvantage of this method is the time taken . It takes a lot of work and time to get the contract and start working with the supplier. It should be started early to get the required supplies on time.

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