Question

Two automobile manufacturers are working together to develop hybrid technology. This type of relationship between the two automobile manufacturers is best described as:

a. Co-opetition
b. Strategic alliance
c. Competition
d. Collaboration
e. Business strategy

Answer 1

Answer: Co-opetition

Step-by-step explanation:

Co-opetition is the term used to describe cooperative competition. Firms coopete with each other for the achievement of same goal and also compete with each other for customers in the market.

Most times, co-opetition takes place when the companies are in the same market and work together to explore knowledge and make research on new products, even though they also compete for market-share for their products and in the utilization of the knowledge created. From the question, the two automobile manufacturers work together to achieve a common goal of development of hybrid technology but will also compete later for market share.

Answer 2

The correct option is A, co-opetition

Step-by-step explanation:

Co-opetition derives its root from competition and co-operation.It refers to an arrangement where competing firms co-operate towards achieving a common goal like the case of two two automobile manufacturers are likely going to be in direct competition with each co-operating in order to develop a hybrid technology expected to benefit both.

Hence option C is obviously wrong as competition is just one side of co-opetition which also includes co-operation

Strategic alliance lacks an element of competition,hence it is also wrong, same applies to collaboration.

Finally, business strategy is generic in nature so it is out of context.