When North Autos Inc. wanted to sell its cars in the country of Balvia, it lacked access to distribution channels and marketing expertise in the country. Thus, North 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
Business · High School · Thu Feb 04 2021
Answered on
B) accessing critical complementary assets
In the given scenario, North Autos Inc. entered into a strategic alliance with a local automobile company in Balvia to gain access to the established distribution channels and marketing expertise of their partner. This is an example of a company trying to access critical complementary assets that it lacks. Complementary assets are resources or capabilities that are valuable when combined with a firm's own capabilities. For North Autos Inc., these assets include the local company's distribution networks and knowledge of the local market—which are essential to successfully sell cars in Balvia.