Chapter 9
Coop= erative Strategy
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Joint Venture (50/50 ownership)
Equi= ty Strategic Alliance (something other than 50/50 ownership)
Non-= equity Strategic Alliance (no separate company or shared equity)
(Wil= son)
A + = B > C &= nbsp; &nbs= p; &= nbsp; SYNERGY
Joint Venture (new venture; pooled assets) – Airbus: EADS
Stra= tegic Alliance (separate companies; can take any form) – F22: Lockheed/Boeing/GD
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In l= arge firms can represent more than 20% revenues (Sequent example)
Get = out of it what you put into it
Stra= tegic partnership model
![](3D"BA458_CH09_files/image002.gif")
Slow= -Cycle Markets
Fast= -Cycle Markets
Stan= dard-Cycle Markets
![](3D"BA458_CH09_files/image004.gif")
Vert= ical Complementary Alliance
&= nbsp; Focused on supply chain/value chain
&= nbsp; Can evolve to strategic out-sourcing
&= nbsp; Own what is strategic; out-source everything else
&= nbsp; Same principle applies to sharing intellectual property (risk/reward ratio rules= )
Hori= zontal Complementary Alliance
&= nbsp; Ignore the “condo” model
&= nbsp; True “horizontal” alliance can be illegal
&= nbsp; &nbs= p; Anyth= ing that reduces competitive behavior
&= nbsp; &nbs= p; Expli= cit collusion, tacit collusion (Oligopoly/Nash model), mutual forbearance
&= nbsp; &nbs= p; Coope= ratives
&= nbsp; Can work in non-overlapping markets (Stentor Alliance)
&= nbsp; Device vs. Product &n= bsp; =3D> &= nbsp; “solution stack”
&= nbsp; Partner to enhance the “solution stack”
&= nbsp; Can partner to pool certain functions (e.g. R&D, Sales, …)
Comp= etitive Response Strategy
&= nbsp; NOT strategic rather than tactical
&= nbsp; Tactical is actually much more common
&= nbsp; Strategic is more powerful but requires larger commitment
Risk Reduction Strategy
Comp= etitive Reduction Strategy (see above)
Corp= orate-Level Cooperative Strategy
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<= span style=3D'mso-list:Ignore'>o&nb= sp; Partner to enter a new market
<= span style=3D'mso-list:Ignore'>o&nb= sp; Spin off less attractive business interests<= /p>
<= span style=3D'mso-list:Ignore'>o&nb= sp; Share benefits across business units
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<= span style=3D'mso-list:Ignore'>o&nb= sp; Create economies of scope
<= span style=3D'mso-list:Ignore'>o&nb= sp; All alliances should be synergistic (otherwi= se why bother!)
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<= span style=3D'mso-list:Ignore'>o&nb= sp; Usually regarded as a channel strategy
<= span style=3D'mso-list:Ignore'>o&nb= sp; Can look franchisees as satellite partners
Inte= rnational Cooperative Strategy
Netw= ork Cooperative Strategy
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Comp= etitive Risks
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Mana= ging Cooperative Strategies
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<= span style=3D'mso-list:Ignore'>o&nb= sp; Disclose only what is required
<= span style=3D'mso-list:Ignore'>o&nb= sp; Use legal agreements as needed
<= span style=3D'mso-list:Ignore'>o&nb= sp; Guard what is “strategic”