This preview shows page 1. Sign up to view the full content.
Unformatted text preview: of scale
• Overcome trade barriers
• Meet competitive challenges from
• Pool resources for very large
• Learn new business techniques
1–44 FIGURE 9.1 Alliances as Part of BusinessLevel Cooperative Strategies 1–45 Internal View: BusinessLevel Cooperative Strategies
Alliances • Combine partner firms’ assets in
complementary ways to create
• Include distribution, supplier or
outsourcing alliances where firms
rely on upstream or downstream
partners to build competitive
• E.g. Biotech and Pharma firms
• Manufacturer and Retailers 1–46 Competition Response Strategy
Response • Occur when firms join forces
to respond to a strategic
action of another competitor.
• Because they can be difficult
to reverse and expensive to
operate, strategic alliances
are primarily formed to
respond to strategic rather
than tactical actions.
• Standards war: VHS vs. Beta
View Full Document
This note was uploaded on 04/28/2013 for the course MGMT 491 taught by Professor S.cho during the Spring '12 term at Washington State University .
- Spring '12