Dell Electronics is very interested in taking advantage of business opportunities in India but does not have access to India's market. Dell has the patent on a low-cost, quality computer system that could assist small businesses in India. Sony Computer, Dell's competitor, is experienced in India's small business market but does not have a computer comparable to Dell's. If Dell and Sony work together to utilize these strengths to seize this opportunity in India, what type of business structure would they likely use?

Question

Quizplus · Accepted Answer

A strategic alliance would be the most appropriate business structure for Dell and Sony to utilize their complementary strengths to take advantage of business opportunities in India. In a strategic alliance, two or more companies work together to achieve a common goal without forming a new entity, allowing each company to retain their independence and control over their operations. In this case, Dell could provide its low-cost, quality computer system while Sony could offer its expertise and access to India's small business market. This would allow both companies to enter the Indian market without having to invest significant resources in direct ownership or licensing.

Dell Electronics Is Very Interested in Taking Advantage of Business