Vibgyor Inc., a manufacturer of smartphones, has entered into a 15-year partnership with a software company to develop sophisticated operating systems and innovative mobile applications for its cell phones.This would mean that both the companies will have to mutually share their resources, knowledge, and capabilities to develop a superior product.What is the relationship between Vibgyor and the software company best referred to as in this scenario?

Question

Quizplus · Accepted Answer

The relationship between Vibgyor and the software company is best referred to as a strategic alliance. Strategic alliances are voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services.