The kind of strategic alliance in which a company forms a strong and close long-term relationship for mutual advantage with a key supplier or distributor is the
A) joint venture.
B) licensing agreement.
C) value-chain partnership.
D) mutual service consortia.
E) holding company.

Question

Quizplus · Accepted Answer

The description best fits a value-chain partnership, in which a company collaborates with a key supplier or distributor to improve efficiencies and lower costs throughout the entire value chain. Joint ventures involve the creation of a new entity, while licensing agreements involve granting rights to use a product or technology. Mutual service consortia involve collaboration among companies in the same industry to provide shared services. Holding companies own and manage assets but do not usually have a strong relationship with a specific supplier or distributor.

The Kind of Strategic Alliance in Which a Company Forms