A large cell phone manufacturer company, ABC, Inc. made an e…
A large cell phone manufacturer company, ABC, Inc. made an early small investment in a start-up company, XYZ that was developing a new type of cell phone app. This gave ABC, Inc. controlling interests in XYZ. However, ABC, Inc. had no commitments to make sustained investments in the experiments of XYZ. ABC, Inc. could invest small amounts depending on the new app’s success at each stage of its development. If the app proved to be successful, ABC, Inc. would have the right to buy out XYZ. This method to strategic alliance is known as
Read DetailsABC, Inc. is a large snack-food conglomerate that operates i…
ABC, Inc. is a large snack-food conglomerate that operates in more than 40 countries and more than 90,000 employees across the globe. It operates through numerous regional product categories, which manage to function as independent profit-and-loss facilities. This allows for substantial economies of scale. Though each division acts as an independent company with its distinct regional directors, repeated sharing of information between the divisions allows for worldwide learning. These factors help the company resolve product and service differentiations at low cost. Which of the following strategies does ABC, Inc. most likely pursue?
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