GeNext, a leading mobile software developer in Japan, agrees to develop exclusive software application programs for a new line of affordable smartphones to be launched by CelCom, a smartphone manufacturer in China. The brand reputation and pricing strategies of both of these companies are expected to bring in large volumes of smartphone sales. The profits from the sales will be divided between these two firms. In the given scenario, GeNext and CelCom have _____.
A) entered into a licensing agreement
B) formed a strategic alliance
C) entered into an agreement for a merger
D) made a direct foreign investment

Question

Quizplus · Accepted Answer

GeNext and CelCom have formed a strategic alliance by agreeing to work together on developing exclusive software for a new line of smartphones, with the expectation of sharing the profits from the sales. This collaboration between two companies for a specific project or set of goals, without merging into a single entity, characterizes a strategic alliance.

GeNext, a Leading Mobile Software Developer in Japan, Agrees to Develop