Suppose Zara has a linked supply chain with Silk City, a fabric supplier. Zara and Silk City use IT to seamlessly exchange data, communicating requirements as well as delivery expectations. The relationship between Zara and Silk City is best described as:

Collaboration Dependence

Co-opetition

Strategic alliance

Competition

Strategic alliance is an arrangement made between two companies to execute a project that is mutually beneficial while each company retains its independence. Companies enter into a strategic alliance in order to improve their product line, expand into a new market or have an edge over their competitor. Strategic alliance allows two businesses to work together and achieve a common goal that will be beneficial to both.

Examples of strategic alliances are an oil company that combines with a research laboratory in order to develop recovery processes and a clothing retainer forming a strategic alliance with a manufacturer in order to ensure good quality.

ogechukwubenedict ogechukwubenedict · Answer 2 · 2020-04-03T19:22:13+02:00

Answer: strategic alliance

Explanation: The relationship between both firms is best described as a strategic alliance. When companies or firms enter into an arrangement to undertake projects where they both benefit from, work towards a common goal while retaining their independence, such companies are said to be in a strategic alliance. Some of the reasons for this sort of alliance include: product improvement, expansion into new markets, development of competitive advantages etc.