ITPEC IP October 2025 Question 84
Which of the following is the appropriate means of complementing the technologies and know-how of one’s company with those of other companies in a short period of time?
Explanation
Alliance — tying up with another company brings in its technology and know-how at once, without building them or buying the company.
In a business alliance (joint development, technology licensing, a joint venture, a minority capital stake) each company keeps its independence while sharing what the other lacks. Developing the same capability in-house takes years, and an acquisition takes a large investment and integration work; an alliance can start as soon as the contract is signed, which is why it is the quick way to complement one's own strengths.
Answer (b)
Why not others:
- •(a) BPR — business process reengineering radically redesigns the company's own business processes; it brings in nothing from another company
- •(c) Incubation — supporting start-ups or new businesses with offices, funds and advice until they can stand on their own; it nurtures a venture over time rather than supplying existing know-how
- •(d) Benchmarking — comparing one's own practices with the best in the industry to find what to improve; the company learns from others but still has to build the capability itself
Key rule: To gain another company's resources quickly, ally with it (cheap, flexible, limited control) or acquire it (full control, high cost); benchmarking only shows what to aim for.
Business Strategy Management · AI-written, may contain errors
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.