Question

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 intensityB. accessing critical complementary assetsC. procuring additional capital investmentsD. reducing differentiation of product and service offerings

Answer 1

Answer: B. accessing critical complementary assets

Explanation:

The reason why option B is the right choice is because the turbo inc. wanted to expand to a new country and it had no access of proper channel through which they could penetrate into the market. Therefore, they formed a strategic alliance with a local automobile company so that they could take advantage of their resources which will help them expand their foothold in the region. Accessing their partners resources is a complementary asset for them because its alliance and therefore, the local automobile company will provide them with this resource.