Which of the following firms would be most likely to enter an alliance in order to maintain market stability?
A) large home appliance manufacturing
B) electronic consumer goods manufacturing
C) natural gas utility
D) clothing retailing

Question

Quizplus · Accepted Answer

Natural gas utility companies operate in a highly regulated industry with high entry barriers, and often face challenges related to pricing and supply-demand fluctuations. Therefore, it is likely that they would form alliances with other companies in the industry to maintain market stability and improve their bargaining power with suppliers and buyers. On the other hand, large home appliance manufacturing, electronic consumer goods manufacturing, and clothing retailing are less regulated industries with lower entry barriers and are less likely to enter alliances for market stability reasons.

Which of the Following Firms Would Be Most Likely to Enter