APICS Certified Supply Chain Professional (CSCP) — Question 196

A media company offers a majority of its movies through a specific distributor. The media company is beginning to produce content for a new foreign market to which the distributor has exclusive access. To maximize savings and gain entry to this new market, the media company should:

Answer options

• A. create a contract for the new market.
• B. enter into a partnership.
• C. form a strategic alliance.
• D. acquire the distributor.

Correct answer: C

Explanation

Forming a strategic alliance allows the media company to collaborate with the distributor while maintaining flexibility and reducing risk. A contract may not provide the necessary collaborative benefits, entering a partnership could be less formal than needed, and acquiring the distributor would be a significant financial commitment that might not be necessary.