Assessment of Cooperative Strategies
Corporate Level Cooperative Strategies
•Corporate-level Strategies
Corporate-Level Cooperative Strategy
Diversifying Strategic Alliances
•Allows a firm to expand into new
product or market areas without
Diversifying
Franchising
Diversifying
Franchising
capabilities, and competencies without
merging or acquiring another firm
•A contractual relationship (franchise) is
developed between two parties, the
franchisee and the franchisor
•An alternative to pursuing growth
through mergers and acquisitions
Synergistic
Strategic Alliance
Franchising
Diversifying
Assessing Corporate-Level
Cooperative Strategies
•Compared to business-level strategies
International Cooperative Strategy
•Cross-border Strategic Alliance
International Cooperative Strategy (cont’d)
•Synergistic Strategic Alliance
–Allows risk sharing by reducing financial investment
•A cooperative strategy wherein several firms
agree to form multiple partnerships to achieve
Network Cooperative Strategy
Network Cooperative Strategies (cont’d)
•Long term relationships that
often appear in mature
Stable Alliance
Network
Network Cooperative Strategies (cont’d)
•Arrangements that evolve in
industries with rapid
Stable Alliance
Network
Competitive Risks of
Cooperative Strategies
•Partners may act opportunistically
Managing Risks in Cooperative Strategies
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Approaches
Desired Outcome
•Creating Value
•Inadequate contracts
•Misrepresentation of competencies
•Cost Minimization Management Approach
Managing Cooperative Strategies
Managing Cooperative Strategies (cont’d)
•Opportunity Maximization Approach