Dynamic Technologies,Inc.had an idea for a new airplane rudder.When it could not gain access to the resources it needed to develop the new product,it entered into a long-term partnership with Starway Airlines.Today Starway uses this rudder on its commercial passenger jets.The relationship between Dynamic Technologies and Starway is an example of a(n) _____.
A) merger
B) budget plan
C) acquisition
D) strategic alliance

Question

Dynamic Technologies,Inc.had an idea for a new airplane rudder.When it could not gain access to the resources it needed to develop the new product,it entered into a long-term partnership with Starway Airlines.Today Starway uses this rudder on its commercial passenger jets.The relationship between Dynamic Technologies and Starway is an example of a(n) _____.
A) merger
B) budget plan
C) acquisition
D) strategic alliance

Quizplus · Accepted Answer

A strategic alliance is a long-term partnership between two organizations designed to accomplish the strategic goals of both parties. Potential benefits to be gained from alliances include (1) increased access to technology, funding, and information; (2) market expansion and greater penetration of current markets; and (3) de-escalated competitive rivalries.