Question

Japanese telecom NTT DoCoMo Inc. and Chinese Internet search operator Baidu Inc. established an alliance to distribute games and other mobile-phone content. Baidu will own 80 percent of this collaboration with DoCoMo holding the remaining 20 percent. This collaborative arrangement is an example of a(n): Group of answer choices equity strategic alliance. network strategy. joint venture. nonequity strategic alliance.

Answer 1

Answer:

Non equity Strategic Alliance

Explanation:

It would have been an equity strategic alliance if one company had bought shares in the other company, but that is not the case in the scenario

A Non Strategic Alliance is one where both companies agree contractually to combine their capabilities and/or resources together for the purpose of achieving a common goal, which describes the situation in the scenario.

Answer 2

Answer:

equity strategic alliance

Explanation:

An equity strategic alliance is basically a strategic alliance where two (or more) companies own a different percent of the new company created by the alliance.

A strategic alliance is formed when 2 or more firms decide to join resources to create a new company that will serve a specific market. While resources are shared within the new company, the two (or more) parent companies remain independent from each other.