According to the Opening Case, IBM once teamed with longtime rival Sun Microsystems to produce software in competition with Hewlett-Packard. This is an example of a(an)
A) equity-based vertical complementary alliance.
B) equity-based horizontal complementary alliance
C) nonequity-based vertical complementary alliance.
D) nonequity-based horizontal complementary alliance.

Question

Quizplus · Accepted Answer

The case describes the alliance between IBM and Sun Microsystems as a competition with Hewlett-Packard, which suggests a vertical complementary alliance where the two firms come together to produce software that complements their respective products or services, without equity investment from either side. Therefore, option C, nonequity-based vertical complementary alliance, is the best choice.

According to the Opening Case, IBM Once Teamed with Longtime