Simmons Semiconducter and Rapid Electronics have formed a strategic alliance to develop a tool that will facilitate computer chip manufacturing. The two firms will work together only to design the tool. Which term best describes this strategic alliance?

Question

Quizplus · Accepted Answer

A functional alliance is when two or more companies collaborate on a specific business activity or project, such as the development of a new tool for computer chip manufacturing, without merging their overall business operations. This type of alliance focuses on enhancing specific functions or processes within the companies involved.

Simmons Semiconducter and Rapid Electronics Have Formed a Strategic Alliance