MGMT 466 - Chapter 9 - Cooperative Strategy

Means by which firms collaborate for the purpose of working together to achieve a shared objective

A competitive advantage developed through a cooperative strategy; relatonship developed along collaborating partners is common basis for CA

Cooperative strategy in which firms combine some of their resources and capabilities for the purpose of creating a competitive advantage

Strategic alliance in which two or more firms create a legally independent company to share some of their resources and capabilities for the purpose of developing a competitive advantage

An alliance in which two or more firms own different percentages of the company they have formed by combining some of their resources and capabilities for the purpose of creating a competitive advantage

An alliance in which two or more firms develop a contractual relationship to share some of their resources and capabilities for the purpose of creating a competitive advantage

Purchase of value-chain activity, or a support function activity from another firm; specified in the form of nonequity strategic alliances

Markets where the firm's CA are shielded from imitation for relatively long periods of time and where imitation is costly;
reasons for using strategic alliance:
1. gain access to restricted market
2. establish a franchise in a new market
3. maintain market stability (ex. est. standards)

Firm's CA not shielded from imitation, preventing LT sustainability;reasons for using strategic alliance: 1. speed up development of new goods and services
2. speed up new market entry
3. maintain market leadership
4. form an industry technology standard
5. share risky R&D expenses
6. Overcome uncertainty

CA moderately shielded from imitation, time is in between fast and slow cycle markets for sustainability
reasons for using strategic alliance: 1. gain market power (reduce industry overcapacity)
2. gain access to complementary resources
3. establish better economies of scale
4. overcome trade barriers5. meet competitive challenges from other competitiors 6. pool resources for large capital projects 7. learn new business techniques

Strategy through which firms combine some of their resources and capabilities for the purpose of creating a competitive advantage by competing in one or more product markets

1. complementary strategic alliances (either vertical or horizontal)
2. competition response strategy
3. uncertainty-reducing strategy
4. competition-reducing strategy

Business-level alliances in which firms share some of their resources and capabilities in complementary ways for the purpose of creating a competitive advantage

Firms share some of their resources and capabilities from different stages of the value chain for the purpose of creating a competitive advantage

Firms share some of their resources and capabilities from the same stage (stages) of the value chain for the purpose of creating a competitive advantage