Chapter 7 slides - Global Alliances MGT466 Dr. Paul Mudde...

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Global Alliances MGT466 Dr. Paul Mudde
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Cooperative Strategies exist in three forms 1. Joint Ventures – new company created by combining assets of the two “parents”. 1. Equity Alliance – equity investment from one partner to the other, no new firm created. 1. Non-equity Alliances – contractual agreements support long-term relationship. 1. Global Alliances – larger partnership typically associated with marketing across borders or technology consortia.
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Why use strategic alliances? Avoid import barriers Share costs and risks Gain access to specific international markets Reduce political risk Speed of entry into new or converging markets
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Partner #1 Partner #2 Joint Venture Or Franchise SAs – aligning strategic intent Successful cooperative strategies are based on: • complementary strategic intent • “fair” combination of resources • “fair” distribution of direct and indirect outputs
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Understanding coop-petition Partner #1 Apple iTunes Partner #2 BMG (Sony) Alliance to sell digital music Area of competition Direct Music sales
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This note was uploaded on 03/25/2011 for the course MGT 466 taught by Professor Ishak during the Fall '08 term at Grand Valley State University.

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Chapter 7 slides - Global Alliances MGT466 Dr. Paul Mudde...

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