Two firms that produce industrial machinery decide to form a strategic alliance. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. Which of the following is the primary value they aim to create through this alliance?

Question

Quizplus · Accepted Answer

The primary value the firms aim to create through the strategic alliance is to achieve economies of scale during production by pooling similar resources. This will help them to reduce costs and improve efficiency in their manufacturing processes. Combining unique skills, lowering distribution costs, and creating product differentiation could be secondary benefits of the alliance, but they are not the primary objective in this case.

Two Firms That Produce Industrial Machinery Decide to Form a Strategic