Question

WheelsUp is a popular bicycle brand in the western United States, while GoTrek is a best-seller in the Midwest. The two companies formed a _____ in which they created economies of scope by sharing resources to build bicycles that can carry either brand name, depending upon the region in which it is sold.

a.diversifying strategic alliance
b.synergistic strategic alliance
c.franchise
d.complementary strategic alliance

Answer 1

WheelsUp and GoTrek entered into a synergistic strategic alliance to share resources and sell bicycles under both brand names, optimizing market presence and efficiency.

Step-by-step explanation:

When WheelsUp and GoTrek formed a partnership to create economies of scope by sharing resources and selling bicycles under either brand name depending on the region, they formed a synergistic strategic alliance. This type of alliance allows companies to share their strengths and compensate for weaknesses, optimizing their market presence and improving competitiveness. By leveraging shared resources and capabilities, they can produce bicycles more efficiently and effectively than either company could do alone.