A car manufacturer and a multinational computer technology corporation intend to combine their strengths to develop intelligent sound systems for cars.Assuming that both companies will have a moderate to high level of interaction,what would be the most suitable form of alliance to adopt?
A) The firms should develop an R&D consortium, combining teams from both companies.
B) The firms should create an equity joint venture, combining assets from both companies.
C) The firms should create a licensing agreement to exploit the new application.
D) The firms should develop production facilities to be shared between the partners.

Question

Quizplus · Accepted Answer

An R&D consortium would combine teams from both companies to develop new technologies or applications of technologies.In this case,the objective of the collaboration is to develop a new application for a technology that could be used in a car.Because of the short product life cycle,and the limited market window for the application,an R&D partnership can help resolve the different challenges both companies would independently encounter in developing this new product and introducing it in cars.

A Car Manufacturer and a Multinational Computer Technology Corporation Intend