Question

Runnerz Inc., a leading manufacturing and retail company that designs and develops footwear and apparel, has signed a contract with a particular courier service for managing the delivery process. The courier service is required to deliver goods from the factory to the warehouse, to customers, and also to collect customer payments for the goods. This is a typical example of a(n) ________.

Answer 1

Answer: Non equity strategic alliance

Explanation: In simple words, it refers to a business arrangement in which two independent companies makes a contractual agreement to pool their resources but not their capitals to work together to attain mutual objective.

Such arrangements are usually made by the organisations to share technologies and other such resources which they lack or to share market shares etc.

The advantage of such an alliance is that the ability between the two parties remain under a limit due to non sharing of equities but usually such arrangements lack communication between the two parties leading to failure of the project.