Question

The alignment of producers of VHS-format VCR’s with producers of prerecorded videotapes is most similar to which of the following?

• A. The alignment of an automobile manufacturer with another automobile manufacturer to adopt a standard design for automobile engines.
• B. The alignment of an automobile manufacturer with an automotive glass company whereby the manufacturer agrees to purchase automobile windshields only from that one glass company
• C. The alignment of an automobile manufacturer with a petroleum company to ensure the widespread availability of the fuel required by a new type of engine developed by the manufacturer.
• D. The alignment of an automobile dealer with an automobile rental chain to adopt a strategy for an advertising campaign to promote a new type of automobile

Answer 1

The correct option is C The alignment of an automobile manufacturer with a petroleum company to ensure the widespread availability of the fuel required by a new type of engine developed by the manufacturer.

The best answer is C. The alliances formed by VHS producers with videotape manufacturers created partnerships between companies whose products were mutually interdependent. Choice (C), an alignment with the producer of a complementary product that is necessary for the original product to function correctly, offers the closest analogy.
An alignment between manufacturers of competing products (A) is not analogous, nor is an alignment with a parts manufacturer (B).
Choice (D) describe alignments with companies that distribute and market the product and are similar to some of the strategic alliances formed by VHS producers, but not to their alignment with videotape producers.