Unformatted text preview: BlueRay vs. HD 1–47 UncertaintyReducing Strategy
Reducing Alliances • Are used to hedge against
risk and uncertainty.
• These alliances are most
noticed in fast-cycle markets
• An alliance may be formed to
reduce the uncertainty
associated with developing
new product or technology
• E.g. Hybrid fuel cells,
Nanotechnology, AIDS drugs,
3g and 4g in telecom
1–48 CompetitionReducing Strategy
Reducing Alliances • Created to avoid destructive or
• Explicit collusion: when firms directly
negotiate production output and
pricing agreements in order to
reduce competition (illegal).
• Tacit collusion: when firms in an
industry indirectly coordinate their
production and p...
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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