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:
To maximize savings and ensure effective entry into the new market, forming a strategic alliance with the distributor would be the best course of action. A strategic alliance allows the media company to leverage the distributor's exclusive access while possibly sharing resources, minimizing costs, and capitalizing on mutual benefits without the complexities and expenses associated with contracts, partnerships, or acquisitions.
The distributor has exclusive access to the new market, the advantages this can offer can be across multiple spheres. A strategic alliance can be the best cost effective option here.