Red Hat Systems is a small company started by two computer programmers who have come up with a medical diagnosis software program that is truly amazing.They can try to market it themselves,but there are only two of them and they have very little money for mass marketing efforts as well as no contacts in the medical field.They have heard that other companies are developing similar products.They have decided to form an alliance with United Medical Systems.What would seem to be the major reason for doing so?
A) To gain rapid access to the market
B) To maintain control of the product
C) To reduce the potential level of competition
D) To challenge itself to develop the necessary capabilities

Question

Quizplus · Accepted Answer

The major reason for forming an alliance with United Medical Systems is to gain rapid access to the market. Red Hat Systems recognize the potential of their medical diagnosis software program but lack the resources and contacts to mass-market the product. By forming an alliance with United Medical Systems, they can tap into their existing network and reach the market quickly. This can be a strategic move to avoid losing out to competitors who might be developing similar products but have better resources to bring them to the market.

Red Hat Systems Is a Small Company Started by Two