s m presentation

7/30/2019 s m Presentation

1/10


2/10

Corporate-Level Cooperative Strategies

Corporate-level cooperative strategies used to

help firm diversify itself in terms of products

offered or markets served or both


3/10

Diversifying strategic alliance

Firms share some of their resources & capabilities

to diversify into new product or market areas

Synergistic strategic alliance

Firms share some of their resources & capabilities

to create economies of scope

Diversifies the involved firms into a new businessin a synergistic way


4/10

Franchising

Firm uses a franchise as a contractual relationship to

describe and control the sharing of its resources and

capabilities with partnersFranchise: contractual agreement between two legally

independent companies whereby the franchisor grants the

right to the franchisee to sell the franchisor's product or do

business under its trademarks in a given location for a

specified period of time


5/10

Assessment of corporate-level cooperative strategies

In comparison with business-level strategies

Usually broader in scope and more complex Also more

challenging and costly

Can be used to develop useful knowledge about how to succeed

in the future

Can lead to competitive advantage if they are managed in ways

that are valuable, rare, imperfectly imitable, and non

substitutable


6/10

International cooperative strategy

Cross-Border Strategic Alliance International cooperative strategy in which firms with headquarters in

different nations combine some of their resources and capabilities to

create a competitive advantage

Can help firms use their resources and capabilities to create value in

locations outside their home market

Due to limited domestic growth opportunities, firms look outside their

national borders to expand business

Local partners can help firms overcome liabilities of moving into a

foreign country


7/10

Network Cooperative Strategy

Cooperative strategy wherein several firms agree to form multiple

partnerships to achieve shared objectives

Very effective when formed by geographically clustered firms (i.e.

Silicon Valley in N. California)

Firms gain access to their partners other partners - so multiple

alliances with multiple partnerships

Can increase competitive advantage potential as set of shared

resources and capabilities expands

Can be problematic - could lock firm in with partners and exclude

development of alliances with others


8/10

Network Cooperative Strategy

Alliance network types: Set of strategic alliance partnerships

resulting from use of a network cooperative strategy

Stable alliance network

Formed in mature industries where demand is relatively

constant and predictable

Directed primarily toward developing products at a low

cost and exploiting economies of scale and scope


9/10

Cont..

Dynamic Alliance Networks

Used in industries characterized by environmental

uncertainty, frequent product innovations, and short

product life cycles

Directed primarily toward continued development of

products that are uniquely attractive to customers


10/10

Competitive Risks with Cooperative

Strategies

s m presentation

Documents