The Coffee Cup,a popular coffee chain in Switzerland,is trying to expand its business into Canada.It decides to enter into a partnership with a Canadian bookstore chain to set up coffee shops inside bookstores,an arrangement which will benefit both firms.This type of partnership that helps to create a competitive advantage in a new market is known as a _____.

Question

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A strategic alliance is a partnership between two companies that come together to achieve some common goal, typically to gain a competitive advantage in a new market. In this case, The Coffee Cup and the Canadian bookstore chain are forming a strategic alliance to set up coffee shops inside bookstores, which will benefit both firms. The other options, such as franchising agreement, joint venture, or buyout, do not fit the scenario given in the question.

The Coffee Cup,a Popular Coffee Chain in Switzerland,is Trying to Expand