French research company, Le Calc, is noted for having expert data analysis capabilities. The firm operates throughout Europe, Asia, and the United States. London-based Sterling Research is a data collection firm operating in Europe and United States. Sterling has more than 400 data collection facilities including phone banks and mall intercept locations. Sterling is considering a contract with Le Calc where they will form a new entity, Marketing Research Consultants, Ltd. The business model is to hire several dozen top-level marketing research consultants who will then use the data collection services of Sterling and the data analysis services of Le Calc. The contract represents:

Question

Quizplus · Accepted Answer

The contract between Sterling Research and Le Calc represents a strategic alliance, as they are forming a new entity, Marketing Research Consultants, Ltd., with the goal of using each other's strengths and capabilities to provide better services to their clients. This is a common practice in the industry and does not necessarily violate antitrust laws. Dilution of industry forces, internal supplier joining forces with an external supplier, and globalization in the industry may be related but do not accurately describe the nature of this contract.

French Research Company, Le Calc, Is Noted for Having Expert