Course: Organizational Development

Read the extract below, which outlines the strategic alliance between T-Mobile and Taco Bell, and answer the questions that follow: "During the 2019 Super Bowl, Taco Bell and T-Mobile unveiled an attractive brand partnership: T-Mobile customers could claim a free Taco Bell taco every Tuesday through the T-Mobile app, just for being a T-Mobile customer (no purchase required). Yes, that's it. All a customer needed to do to get a free taco was to stick with their T-Mobile plan. This strategic alliance example was a great way to encourage brand loyalty to T-Mobile. And since the promotion had customers rushing to Tace Bell to claim their free taco, they likely bought other food or drinks there. It also made the act of going to Taco Bell a habit, even after the promotion ended." (a) Describe any two (2) reasons why companies such as T-Mobile and Taco Bell may choose to engage in strategic alliances. (10 marks) (b) Describe any two (2) reasons why strategic alliance arrangements can fail over time. (10 marks)