Pan Amsat developed a joint venture with Jsat Corporation to develop and send into orbit a small satellite. Which type of alliance the above statement represents ?
Synergistic Alliance
Option 3 — Synergistic Alliance is correct.
A synergistic alliance is a strategic alliance in which two firms pool complementary resources, capabilities and know-how so that the combined output is greater than what either could achieve alone (the classic 2 + 2 = 5 effect). When Pan Amsat and Jsat Corporation form a joint venture to jointly develop and launch a satellite, each partner contributes different strengths — technology, capital, orbital and market access — to create a capability neither had independently. That mutual reinforcement of resources is the hallmark of a synergistic alliance.
In alliance typologies, cooperative ventures are often grouped by intent: synergistic alliances create value by combining complementary strengths in a related activity, whereas a diversifying alliance is used to enter a new, unrelated business area.
Why the other options are wrong:
| Option | Reason |
|---|---|
| Diversifying Alliance | Aims at entering an unrelated business; here both firms are in the same satellite domain. |
| Franchising | A licensor lets a franchisee use its brand/format for a fee; not a resource-pooling joint venture. |
| None of the above | The situation clearly fits a synergistic alliance. |
Takeaway: Pooling complementary resources in a joint venture for shared advantage is a synergistic alliance.
Similar Questions
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Who among the following has given the statement : “transition from single function focus to a multi function focus is essential for successful strategic management”?
__________ signals a strategic inflection point necessitating a radical strategic shift.
Match the items of List - I with List - II and select the code of correct matching :
List - I List - II (a) Merger of Vodafone and Idea (i) Business Strategy (b) Launch of Apple iphone 7 plus (ii) Operational Strategy (c) Manufacturing Samsung mobile handsets in India (iii) Corporate Strategy Code :
Which among the following is not a generic strategy ?
Which one among the following is not a correct statement ?
Which of the following statements is not correct about strategic management ?
Vertical merger is the merger of two firms which are involved in which one of the following forms ?
Michael E. Porter’s five generic strategies are :
“Pepsi Co launched a hostile take over of Pepsi Bottling Group after its $ 4.2 billion offer was rejected”. Which strategy was used in this case ?
Important Questions from Strategic Management
When the organizational requirements advocate tight cost control; frequent, detailed control reports; structured organization and responsibilities and incentives based on meeting strict quantitative targets then it is called:
Which of the following strategies are types of combination strategies?
(A) No change strategies
(B) Pause/Proceed with caution strategies
(C) Turn around strategies
(D) Profit strategies
(E) Concentration strategies
As per Henry Mintsberg, which of the following is NOT a part of his conception of types of strategies?
- Strategic Management involves :
(a) Assessment of external environment
(b) Identification of subsystem
(c) Unity of command
(d) Span of control
(e) Assessment of resources and capabilities
(f) Identification of goal
Code : Put the following steps of strategic Management Process in correct sequence :
a. Scanning and Evaluation of Business Environment
b. Formulating strategies
c. Implementation of Corporate Strategy
d. Deciding about the Mission of the organisation
e. Setting Corporate Level Objective
Codes :
