Chapter 9: Cooperative Strategy

Front 1

Cooperative Strategy

Back 1

Is a means by which firms collaborate for the purpose of working together to achieve a shared objective.

Front 2

Strategic Alliance

Back 2

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

Front 3

Joint Venture

Back 3

A 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

Front 4

Equity Strategic Alliance

Back 4

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.

Front 5

Nonequity Strategic Alliance

Back 5

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.

Front 6

Business-Level Cooperative Strategy

Back 6

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

Front 7

Complementary Strategic Alliances

Back 7

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

Front 8

Corporate-Level Cooperative Strategy

Back 8

A strategy through which a firm collaborates with one of more companies for the purpose of expanding its operations.

Front 9

Diversifying Strategy Alliance

Back 9

A strategy in which firms share some of their resources and capabilities to engage in product and/or geographic diversification

Front 10

Synergistic Alliance

Back 10

A strategy in which firms share some of their resources and capabilities to create economies of scope

Front 11

Franchising

Back 11

A strategy in which a firm uses a franchise as a contractual relationship to describe and control the sharing of its resources and capabilities with its partners.

Front 12

Cross-Border Strategic Alliance

Back 12

A strategy in which firms with headquarters in different countries decide to combine some of their resources and capabilities for the purpose of creating a competitive advantage.

Front 13

Network Cooperative Strategy

Back 13

A strategy wherein several firms agree to form multiple partnerships for the purpose of achieving shared objectives.

Front 14

Types of major strategic alliances

Back 14

1. Joint Venture
2. Equity Strategic Alliance
3. Nonequity strategic alliance

Front 15

Reasons to develop strategic alliances

Back 15

1. slow cycle markets
2. fast cycle markets
3. standard cycle markets

Front 16

Types of complementary strategic alliances

Back 16

1. Vertical
2. Horizontal

Front 17

Vertical Complementary Strategic Alliance

Back 17

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

Front 18

Horizontal Complementary Strategic Alliance

Back 18

an alliance in which firms share some of their resources and capabilities form the same stage of the value chain for the purpose of creating a competitive advantage

Front 19

Types of Corporate Level Cooperative Strategies

Back 19

1. Diversifying alliances
2. Synergistic alliances
3. Franchising

Front 20

Alliance Network

Back 20

set of strategic alliance partnerships firms develop when using a network cooperative strategy

Front 21

Stable Alliance Network

Back 21

formed try to extend their competitive advantage to other settings while continuing to profit from operations in their core. Occurs in mature markets

Front 22

Dynamic Alliance Network

Back 22

used in industries characterized by frequent product innovations and short product life cycles

Front 23

Franchise

Back 23

contractual agreement between two legally independent companies whereby the franchisor grants the right to the franchisee to sell the franchisor's product or do business under it's trademark

Front 24

Mutual Forebearance

Back 24

Form of tacit collusion in which firms do not take competitive actions against rivals they meet in multiple markets