Answer: Strategic relationship.
Precisely vertical type of strategic relationship.
Explanation: Strategic relationship is the type of relationship that exists between two or more commercial businesses regulated by business contracts in order to achieve business growth, as well as development and distribution of products.
Types of strategic partnership.
• Horizontal strategic partnership: This happens when strategic partnership occurs between business competitors with the aim of teaming up to improve their market stand.
•Vertical strategic partnership: it happens between a business and companies within its supply chain.
• Intersection strategic partnership: Occurs when businesses from different geographical locations comes together to share knowledge for each others advantage.
Others includes joint venture and equity type of strategic partnership.
They are called strategic relationships.
A strategic relationship is the type of relationship that exists between two business enterprises and is commonly characterized by business contracts. In other words, such a relationship is usually formalized by agreement in the form of one or more business contracts.
Commercial enterprises usually involve in strategic relationships or partnerships with the hope to enhance their offers and offset their cost. The general concept or idea about a strategic relationship is that two are better than one and by allying, the two commercial enterprises would benefit from combining their resources.
Over the years, there have been some strategic partnership agreements between some of the big companies known to us.
For example HP and Disney initiated a 10-year strategic relationship to create new technologies and boost consumer entertainment experiences.
Another example is the Microsoft and Nokia strategic partnership, where Nokia team up with Microsoft to create a smartphone that can compete with Google android and Apple’s iPhones.
Therefore, the strategic partnership adds value to both companies by elevating their consumer’s experiences and can also be a better way for most companies to lower cost.
Some of the examples of a strategic partnership include:
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