When Imax Inc. was developing fuel cells for the army, what advantage associated with strategic alliance were they exploiting when it formed an alliance with W. L. Gore & Associates to avoid incurring the cost of creating its own fuel cell membrane from scratch?
A) reinforcing market power
B) establishing technical standards
C) allowing specialization of capabilities
D) reducing the cost of creating the value chain

Question

Quizplus · Accepted Answer

By forming an alliance with W. L. Gore & Associates, Imax Inc. was able to reduce the cost of creating the value chain by leveraging Gore's existing expertise and resources in fuel cell membranes, rather than developing the technology independently.