Drawbacks of Strategic Alliances Strategic alliances have their downsides: Core strengths may be weakened A firm's core strengths make it different from its competitors. Key differences with competitors may be diminished IBM and CompaqStrategic alliances have their downsides: „ Core strengths may be weakened „ Key differences with competitors may be diminished „ IBM and Compaq Drawbacks of Strategic Alliances A firm’s core strengths make it different from its competitors