Japanese telecom NTT DoCoMo Inc. and Chinese Internet search operator Baidu Inc. established an alliance to distribute games and other mobile-phone content. Baidu will own 80% of this collaboration with DoCoMo holding the remaining 20%. This collaborative arrangement is an example of a(n)
A) joint venture.
B) network strategy.
C) equity strategic alliance.
D) nonequity strategic alliance.

Question

Quizplus · Accepted Answer

The establishment of this alliance between NTT DoCoMo Inc. and Baidu Inc. with Baidu owning 80% and DoCoMo holding the remaining 20% represents an equity strategic alliance. An equity strategic alliance is a partnership where two or more firms create a legally independent company to share some of their resources and capabilities to develop a competitive advantage.

Japanese Telecom NTT DoCoMo Inc