Question

Japanese telecom NTT DoCoMo Inc. and Chinese Internet search operator Baidu Inc. established an alliance to distribute games and other mobile-phone content. Baidu will own 80% of this collaboration with DoCoMo holding the remaining 20%. This collaborative arrangement is an example of a(n)

a. joint venture.
b. network strategy.
c. equity strategic alliance.
d. non-equity strategic alliance.

Answer 1

Answer: c. equity strategic alliance

Step-by-step explanation:

This occurs when there is a cross or partial alliance between two organizations, that is when a company buys minor equity in another company (partial equity) or they both buy equity in one another's. (cross equity)

An example us between DoComo holdings and Basic Inc as stated in the question, another example is between Tesla and panasonic which started as a $30million investment.

Equity alliance can either be partial or cross equity alliance.