Problem:
A car manufacturer and a multinational computer technoloy corporation intend to combine their strengths to develop intelligent sound system for cars.
Required:
Question 1) Assuming that both companies will have a moderate to high level of interactions what would be the most suitable form of alliance to adopt?
a) The firm should develp an R&D consortium, combining teams from both companies.
b) the firms should create an equity joint venture, combining assets from both companies.
c) the firms should create a licesing agreement to exploit the new application.
d) the firm should develop production facilities to be shared between the partners.
Explain the solution in detail.