A microchip company wants a computer company to produce more powerful tablets and therefore use more of its chips. That same computer company wants the microchip maker to create chips with faster processing power. What approach could these companies take so that both can serve stockholders well?

O Both companies should reduce prices to force out competitors and make entering the market less appealing to potential rivals.

O Whichever company is larger should acquire the smaller one and impose its management system on the acquired company.

O The two companies should enter a strategic alliance to bring about a win-win situation for them and to limit their rivals' power.

O For data security reasons, both companies should remain separate and refrain from sharing information.

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Business

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3 February, 11:55

A microchip company wants a computer company to produce more powerful tablets and therefore use more of its chips. That same computer company wants the microchip maker to create chips with faster processing power. What approach could these companies take so that both can serve stockholders well?

O Both companies should reduce prices to force out competitors and make entering the market less appealing to potential rivals.

O Whichever company is larger should acquire the smaller one and impose its management system on the acquired company.

O The two companies should enter a strategic alliance to bring about a win-win situation for them and to limit their rivals' power.

O For data security reasons, both companies should remain separate and refrain from sharing information.

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Answers (1)

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Iyana Simon · Answer 1

"The two companies should enter a strategic alliance to bring about a win-win situation for them and to limit their rivals' power."

Explanation:

A strategic alliance occurs when two companies agree to cooperate and work together on a project that mutually benefits them both, while they both remain independent companies.

Since the microchip company and the computer company have a common goal that benefits both of them, then a strategic alliance would be the best way to achieve their goals and provide maximum value to their stockholders.