When Turbo Autos Inc. wanted to sell its cars in the country of Sylvanistan, it lacked access to distribution channels and marketing expertise in the country. Thus, Turbo Autos had to enter into a strategic alliance with a local automobile company to get access to the foreign partner's well-established distribution channels. Which of the following reasons for entering into a strategic alliance is best illustrated in this scenario? a) increasing competitive intensity

b) accessing critical complementary assets

c) procuring additional capital investments

d) reducing differentiation of product and service offerings

Question

Business

Bradyn Merritt

9 September, 15:40

When Turbo Autos Inc. wanted to sell its cars in the country of Sylvanistan, it lacked access to distribution channels and marketing expertise in the country. Thus, Turbo Autos had to enter into a strategic alliance with a local automobile company to get access to the foreign partner's well-established distribution channels. Which of the following reasons for entering into a strategic alliance is best illustrated in this scenario? a) increasing competitive intensity

b) accessing critical complementary assets

c) procuring additional capital investments

d) reducing differentiation of product and service offerings

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Answers (1)

Know the Answer?

Benjamin · Answer 1

The correct answer is accessing critical complementary assets.

Explanation:

Complementary assets are those that are required to derive value from a primary investment, that is, companies to take advantage of the value of their expenses in information technology need major investments that complement their proper functioning.

For example; Harnessing the value of automobiles requires considerable complementary investments in roads, highways, gas stations, repair facilities, and a legal regulatory structure to set standards and control drivers.