Ch.9.pptx - Cooperative strategy Chapter 9 Opening case • Renault-Nissan – Was looked down • Putting two so-so companies together won’t produce

Ch.9.pptx - Cooperative strategy Chapter 9 Opening case •...

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Cooperative strategy Chapter 9
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Opening case Renault-Nissan Was looked down Putting two so-so companies together won’t produce a good one, e.g., Alcatel and Lucent To develop economies of scale Peugeot-Citroen-GM’s Opel To produce engines and transmissions Ford and GM To produce upgraded engines
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Cooperative strategy A strategy in which firms work together to achieve a shared objective E.g., Game of Thrones Prime streaming thanks to Amazon-HBO partnership Firms combine some of their resources and capabilities to create a mutual competitive advantage Relational advantage A competitive advantage developed through a cooperative strategy Trust! E.g., Boeing & Airbus Sega and Microsoft
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Strategic alliance Combined Resources Capabilities Core Competencies Resources Capabilities Core Competencies Resources Capabilities Core Competencies Firm A Firm B Mutual interests in designing, manufacturing, or distributing goods or services
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Types of strategic alliances Joint Venture Firms create a legally independent company by sharing some of their resources and capabilities E.g., AIG and People’s Insurance Company of China Equity Strategic Alliance Partners who own different percentages of equity in a separate company they have formed E.g., France’s ClubMed with China’s Fosun International Nonequity Strategic Alliance Firms develop a contractual relationship to share some of their unique resources and capabilities E.g, Apple first with Foxconn, and then with Pegatron
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  • Spring '19
  • Kim

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