Toshiba Electronics is very interested in taking advantage of business opportunities in India but does not have access to India's market. Toshiba has the patent on a low-cost, quality computer system that could assist small businesses in India. Sony Computer, Toshiba's competitor, is experienced in India's small business market but does not have a computer comparable to Toshiba's. If Toshiba and Sony work together to utilize these strengths to seize this opportunity in India, what type of business structure would they likely use?
A) Trading company
B) Strategic alliance
C) Licensing
D) Direct ownership
E) Exporting

Question

Quizplus · Accepted Answer

A strategic alliance would be the most appropriate business structure for Toshiba and Sony to collaborate and enter the Indian market. Toshiba can bring in its technology, and Sony can provide the market know-how and expertise. A strategic alliance would allow them to share resources, knowledge, and risks, while maintaining their separate legal entities.

Toshiba Electronics Is Very Interested in Taking Advantage of Business