Zeal Inc., a software firm, decides to enter the publishing industry. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Which of the following is likely to be true in this case?

Question

Quizplus · Accepted Answer

Since Zeal lacks the expertise and technical knowledge required to establish itself in the publishing industry, it is likely that it will need to cooperate with Chrome even in the research and development stage. This means that both firms will collaborate closely to develop new products and technologies, and this could lead to a strong strategic alliance. Choosing A, C or D is incorrect as the passage does not provide support for any of these options.

Zeal Inc, a Software Firm, Decides to Enter the Publishing Industry