Supernova Inc.wishes to enter a new market to expand its business.Realizing that the resources within the firm might not be sufficient to establish a new business unit, the company has entered into an agreement with Alba Inc.; both the companies will combine their resources and skills to establish and manage the new unit.Which of the following entry modes has Supernova Inc.adopted?
A)Internal new venture
B)Joint venture
C)Divestment
D)Acquisition
E)Outsourcing

Question

Quizplus · Accepted Answer

Supernova Inc. has entered into a joint venture with Alba Inc. to combine their resources and skills to establish and manage the new unit. This is a form of strategic alliance, where two or more companies come together to share resources, risks, and benefits in a mutually beneficial partnership. Joint ventures are a popular mode of entry into a new market because they allow companies to leverage each other's strengths, minimize risks, and share costs.