Chapter 9
Cooperative Strategy
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Learning Objectives
Studying this chapter should provide you with
the strategic management knowledge needed to:
1. Define cooperative strategies and explain why firms use them.
2. Define and discuss the three major types of strategic alliances.
3. Name the business-level cooperative strategies and describe
their use.
4. Discuss the use of corporate-level cooperative strategies in
diversified firms.
5. Understand the importance of cross-border strategic alliances as
an international cooperative strategy.
6. Explain cooperative strategies’ risks.
7. Describe two approaches used to manage cooperative strategies.
•Cooperative Strategy
Cooperative Strategy
Strategic Alliance
Strategic Alliance Behaviors
Strategic Alliance
Resources
Resources
Firm A Firm B
•Joint Venture
Three Types of Strategic Alliances
Reasons for Strategic Alliances by Market
Type
©2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
Reasons for Strategic Alliances
Market Reason
Reasons for Strategic Alliances (cont’d)
Market Reason
Fast Cycle •Speed up development of new
goods or service
Reasons for Strategic Alliances (cont’d)
Market Reason
Standard
•Gain market power (reduce industry
overcapacity)
Business-Level Cooperative Strategies
Business-Level Cooperative Strategies
new value
•Include distribution, supplier or
outsourcing alliances where
firms rely on upstream or
downstream partners to build
competitive advantage
Vertical and Horizontal Complementary
Strategic Alliances
•Vertical Complementary Strategic Alliance
Complementary Strategic Alliances
Uncertainty-Reducing Strategy
•Occurs when firms join forces
Uncertainty-Reducing Strategy
Uncertainty-Reducing Strategy
Complementary
Strategic Alliances
Competition
•Created to avoid destructive or
excessive competition