Week 9- Alliances

Week 9- Alliances - Cooperative Strategies Alliances...

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Cooperative Strategies/ Alliances Instructor: Mahka Moeen Spring 2012 1
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Agenda How might a cooperative strategy help a firm gain competitive advantage? What are the three basic types of cooperative strategies? What are the risks associated with cooperative strategies? How might firms minimize or mitigate those risks?
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What is a cooperative strategy? Cooperative strategies result when firms decide to work together to accomplish some shared objective/outcome Usually one that neither partner can achieve independently It involves sharing of resources, capabilities, core competencies in unique ways to create competitive advantage/above normal returns
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Yahoo and Microsoft Why did Yahoo and Microsoft form an alliance? Which of these firms do you think will benefit more from the collaboration?
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Three types of alliances Joint ventures Equity strategic alliances Non-equity strategic alliances, which include Licensing agreements Outsourcing commitments Distribution agreements
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Three types of alliances Joint venture: two or more firms create a legally independent company to share resources and capabilities to develop a competitive advantage Optimal when firms need to combine their resources and capabilities to create a competitive advantage that is substantially different from individual advantages, and
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This note was uploaded on 04/09/2012 for the course BMGT 495 taught by Professor Kiyatkin during the Spring '08 term at Maryland.

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Week 9- Alliances - Cooperative Strategies Alliances...

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