"Actually we $[$new venture$]$ have several ways to go$.$ The first is to deal with agents. This way is hard for newly found firms. You need to invest a lot of capital. It is also hard to control the market and resolve conflicts between agents. The second way is to provide service for contractors. Nevertheless, in this way we cannot develop a close relationship with either the end$-$users or the contractors. The relationships with contractors are more price$-$oriented and loosely coupled. Therefore, we focus on the third way, which is to form close strategic alliances with some players $[$mainly incumbent competitors$]$ in the industry. They have an extensive customer base, but lack the core technology to meet the customers' needs. We can complement each other and integrate our products and technologies. $($INV $0501$:$3)"($Adapted from Siu and Bao, $2004)$ For the incumbent competitor, the text describes an uncertainty$-$reducing strategic alliance.

True

False